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Post-pandemic employment surge fuels continued NI and income tax growth

by jcp
gawdo
  • Receipts from PAYE income tax and national insurance contributions (NICs) for April 2021 to January 2022 are £275.9 billion, which is £27.6 billion higher than in the same period a year earlier.
  • This is due to the number of paid employees continuing to increase as we emerge from the pandemic.
  • Receipts from self-assessment income tax and NICs for April 2021 to January 2022 are £47.2 billion, which is £10.5 billion higher than in the same period a year earlier.
  • Overall stamp duty receipts for April 2021 to January 2022 are £15.1 billion, which is £5.3 billion higher than in the same period a year earlier.
  • Inheritance tax receipts for April 2021 to January 2022 are £5.0 billion, which is £0.7 billion higher than in the same period a year earlier.

Today HMRC released the latest Tax Receipts and National Insurance monthly bulletin: HMRC tax receipts and National Insurance contributions for the UK (Monthly Bulletin) – GOV.UK (www.gov.uk)

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

“The data shows the nation continuing to emerge from the pandemic with income tax and national insurance continuing to surge as more people return to work. There has also been quite a climb in self-assessment income tax and national insurance which could be an indication of more people deciding the time is right to start working for themselves after re-assessing their priorities during the pandemic.

The continuing rise in these receipts signals good news as we see more people in work but many of us are also bracing ourselves for the forthcoming 1.25 percentage point rise in national insurance – otherwise known as the Health and Social Care levy – due to come in April. This is a move that will really hit us in the pocket at a time when many of us are already struggling to deal with the rising cost of living.

Stamp duty receipts continue to be robust as people rushed to be in their new homes for Christmas. However, there have been recent reports that the pandemic race for space – where people left cities in search of homes with larger gardens could soon be reversed as second steppers look to buy homes within easy commuting distance of work. These moves look likely to keep house prices high as demand continues to outstrip supply.”

www.gawdo.com

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