Recent data from HMRC shows the tax authority collected £392 billion in taxes between April and October 2021, £99.8bn more than the same period in 2020.
Afford Bond Tax Director, Chris Regnauld commented: “Tax receipts collected for income tax, capital gains tax, National Insurance contributions and the apprenticeship levy were £210.4bn, which is £31.1bn higher than the same period a year earlier. And even receipts from VAT were higher by a staggering £51bn, mainly due to the VAT payment deferment policy.”
In percentage terms, receipts compared to last year were highest from stamp taxes (66%) hydrocarbon oils (28%), corporation tax (27%) and inheritance tax (20%). HMRC warned against making comparisons in tax takes between this financial year and the last, given the impact the pandemic had on tax receipts and the many different advantages businesses took of the government grants available.
However, tax receipts between April and October 2019 totalled around £362bn, meaning HMRC has collected more this year than the immediate pre-pandemic period.
The Treasury will be hoping a continued economic recovery will automatically lead to higher tax takes to pay for its spending plans without turning to public borrowing. Afford Bond have a proven track record of expert tax advice to clients – existing and new.
If you or your business has been affected by changes in tax requirements recently, talk to us by emailing Chris.Regnauld@affordbond.com or use the Contact Us form here on our website.