Adam Afriyie (Conservative, Windsor): To ask the Chancellor of the Exchequer what recent steps he has taken to simplify the rates of Employees’ National Insurance contributions.
Mr David Gauke (Financial Secretary to the Treasury): This Government is committed to a competitive tax regime and has introduced a range of measures to reduce the burden of National Insurance Contributions (NICs), as part of our long term economic plan to back business and create jobs.
The Employment Allowance, introduced in April this year, means that around 450,000 employers– one third of all employers – are expected to be taken out of paying employer NICs altogether in 2014-15 and from April 2015, employer NICs for under 21 year olds will be abolished, helping to support jobs for almost 1.5 million young people currently in employment.
Adam Afriyie (Windsor, Conservative): To ask the Chancellor of the Exchequer how many people in (a) the UK, (b) the Thames Valley and (c) Windsor constituency no longer pay income tax due to changes in the level of personal allowance introduced since 2010.
David Gauke (The Exchequer Secretary): By April this year this Government’s increases in the personal allowance (for those born after 5 April 1948) are estimated to have taken over 3 million individuals out of the income tax system altogether. 384,000 of these individuals live in the south east region, which includes the Thames Valley and the parliamentary constituency of Windsor.
These estimates are based on the 2011-12 Survey of Personal Incomes, projected to 2014-15 using economic assumptions consistent with the Office for Budget Responsibility’s March 2014 economic and fiscal outlook.
HM Treasury does not publish this information at constituency level.