Home Finance HMRC sets pandemic problems aside as tax take soars

HMRC sets pandemic problems aside as tax take soars

by uma
gawdo

 

  • HMRC collected £718.2 billion in taxes in the 2021/22 tax year, an increase of 22.9% from the year before according to provisional figures.
  • Receipts from PAYE Income Tax and NIC1 for April 2021 to March 2022 are £338.0 billion, which is £34.8 billion higher than in the same period a year earlier. 
  • This shows the number of paid employees increasing by 5.5% to 1,556,000 employees.
  • Stamp duty receipts for April 2021 to March 2022 are £18.6 billion, which is almost 50%, or £6.1 billion higher, than in the same period a year earlier. 
  • Inheritance tax receipts for April 2021 to March 2022 are £6.1 billion, which is £0.7 billion higher than in the same period a year earlier.
  • Air passenger duty receipts for April 2021 to March 2022 are £1.0 billion, which is £0.4 billion higher than in the same period a year earlier. However, this is still way down on previous years due to travel restrictions.

HMRC has published tax receipts and national insurance data HMRC tax receipts and National Insurance contributions for the UK – GOV.UK (www.gov.uk)

Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown:

“HMRC’s tax take is on the rise as the UK emerges from the pandemic with an eye-watering provisional haul of £718.2bn. Income tax and national insurance receipts have continued to surge as the number of people in the workforce increases, while the buoyant house market has seen stamp duty  reach an all-time high of £18.6bn. Air passenger duty, which was stuck in the doldrums as a result of COVID restrictions, has also seen some recovery with more and more people braving the airport queues and delays to book a sunshine break.

However, some heart-breaking reminders of the pandemic remain. Inheritance tax receipts surged past £6bn in 2021/22 – an indicator of the higher number of wealth transfers that took place. It’s also increasingly evident that the government’s decision to freeze nil rate bands is playing its part as more people get caught in the inheritance tax trap.

As we emerge from the pandemic, we face difficult times ahead as the cost of living starts to bite. The property market has thrived in the past year as buyers took advantage of stamp duty holidays to bag themselves a new home. But with costs on the rise, it’s uncertain how long the market can sustain this momentum and we could see a quieter year ahead. Workers will also be bracing themselves for the 1.25 percentage point rise in national insurance which began in April – a further cost increase impacting already squeezed budgets.”

www.gawdo.com

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