- Income Tax and National Insurance receipts for April to December 2022 are £281.1 billion.
- This is £34.3 billion higher than in the same period a year earlier.
- This is despite an increase in primary threshold for National Insurance and a decrease in rates.
- Stamp duty receipts are £15.7 billion – £1.8 billion higher than in the same period a year earlier.
- There was a slight uptick in figures following government announcements of stamp duty cuts, but it had started to trend down.
- Inheritance tax receipts are £5.3 billion, which is £0.7 billion higher than in the same period a year earlier.
HMRC has issued the latest tax receipts and national insurance data 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:
“Tax threshold freezes continue to bite, with income tax and national insurance as well as inheritance tax receipts continuing to soar. High employment will be a factor, but it is notable that even moves to lower the amount paid in national insurance has not stopped receipts from surging as income tax thresholds continue to be held, bringing more people into paying tax.
It is also the case with inheritance tax. The £0.7bn increase in receipts has been put down to a small number of large payments but with the thresholds frozen for several years we are definitely seeing this tax becoming a headache for more families to deal with. It’s definitely not a tax just for the super-rich and we should see awareness of it grow with a recent storyline in Eastenders showing a character being clobbered with a massive bill after inheriting a house.
At first glance, stamp duty receipts also look extremely healthy, but a closer inspection shows signs the market is running out of steam. Government moves to cut the amount of stamp duty paid gave the market a bit of a boost just before Christmas but prior to that the trend was down as the market started to struggle amid cost-of-living concerns which were then exacerbated by the fall out of the mini-Budget. Some buyers may have been coaxed back out into the market since, but the gloomy economic outlook means many people are shelving their house buying plans for now. With the time lag between choosing to buy a house and stamp duty paid being around three to four months the likelihood is that we will see receipts continue to cool. “