PAYE take-home income statistics
The Minister said precise take-home income figures were unavailable because PRSI deductions were recorded against reckonable earnings, though estimated income-tax deductions by income range were provided. He said a breakdown by gross income was under consideration as part of Revenue computerisation.
asked the Minister for Finance the number of people in the PAYE sector who have take-home incomes per year after deductions of between (a) £1,000 and £5,000; (b) £5,000 and £10,000; (c) £10,000 and £15,000; (d) £25,000 and £30,000; and (e) over £30,000.
Comment on this
Statistics are not available which would enable the precise information requested by the Deputy to be given. Deductions for PRSI are levied on reckonable earnings, that is, gross income less superannuation contributions. Information is not available which would show the amount of these deductions by range of gross income.
From the information available an estimate of the amount of income tax deductions has been made by a range of total income, that is, gross income less superannuation contributions, interest relief, medical insurance relief and allowable expenses, and the reply to the Deputy has been compiled on this basis. The following table sets out the information which I propose to circulate in the Official Report:
1982-83
Notes on table:
1. The figures given under the heading "Number of persons" are compiled on the basis that a married couple is one unit for tax purposes regardless of whether one spouse is earning or both spouses are earning.
2. The figures are based on a provisional distribution of taxpayers compiled for 1982-83. Actual figures for the year are not yet available. The latest actual data available is contained in tables 83 to 89 of the annual report of the Revenue Commissioners for the year ended 31 December 1980, copies of which are in the Library.
3. The very high numbers of persons reflected in the lowest range shown in the table would be to some extent accounted for by incomes of persons commencing or ceasing employment during the course of the year which would not have been collated with other income of the same persons.
4. For the sake of completeness the ranges of £15,000 to £20,000 and £20,000 to £25,000 have been included.
Comment on this
I may have missed an important part of the Minister's reply. Is the computer at the disposal of the Revenue Commissioners not in a position at the touch of a button to provide the information Deputy Flaherty wanted? Does it not show what everybody's net income is after at source deductions? Is it not possible to sum up the totals in a way corresponding to that in which Deputy Flaherty put down this question?
Comment on this
As I said, deductions for PRSI are levelled on reckonable earnings, that is gross income less superannuation contributions. It is on that basis that the information I referred to is available. It does not seem unreasonable to suggest, as the Deputy does, that we should have a breakdown of the information on the basis of gross income levels and that, among other things, is receiving attention in the consideration we are giving to computerisation generally in the Office of the Revenue Commissioners.
Comment on this
Is the Minister saying the Department do not have available the net income — the take home pay — of everybody in the PAYE sector?
Comment on this
Deputy Flaherty asked for information on deductions from gross incomes. I said the information is treated by the Revenue Commissioners on the basis of reckonable income, which is not necessarily the same as gross income.
Comment on this
I was interested in take-home pay and I presume that information is available in the tabular statement.
Comment on this
The information in the tabular statement has been compiled on the basis of an estimate of the amount of income tax deductions by range of total income. On the basis of that estimate the number of persons with take-home pay per annum in the ranges £1,000 to £5,000, £5,000 to £10,000 and so on——