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Complainant Name:
Mr Christopher Lord

Clauses Noted: 1

Publication: The Daily Telegraph

Complaint:

Mr Christopher Lord complained to the Press Complaints Commission that an article reporting on the true level of tax paid by workers in the UK was misleading as it quoted marginal tax rates without explaining that these included National Insurance Contributions paid by employers as well as employees.

Resolution:

The complaint was resolved when the PCC negotiated the publication of the following clarification in the newspaper:

Marginal tax rates

Further to recent coverage, we wish to make clear that in its paper on marginal effective tax rates the Centre for Policy Studies took into account employers' National Insurance (NI) contributions on the basis that employers' NI affects what the employee finally receives.

The following statement was also added to the online article:

The think tank calculated marginal effective tax rates by taking into account both employees' and employers' National Insurance contributions. The paper included employers' NI on the footing that it increases the cost to employers of employing staff, thereby driving "a wedge between the cost of the employee and what the employee finally receives". Even without including employers' NI contributions, real taxation rates are effectively higher than income tax rates would suggest.

Date Published: 08/11/2011



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