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HMRC tax take soars

HMRC collected £718.2 billion in taxes in the 2021/22 tax year, an increase of 22.9 per cent from the year before according to provisional figures.

HMRC tax take soars
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The latest figures showed that 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 indicated that the number of paid employees has increased by 5.5 per cent to 1,556,000 employees.

Additionally, stamp duty receipts for April 2021 to March 2022 are £18.6 billion, almost 50 per cent, or £6.1 billion higher, than in the same period last year.

Inheritance tax receipts for April 2021 to March 2022 are £6.1 billion to £0.7 billion higher than in the same period a year earlier.

And air passenger duty receipts for April 2021 to March 2022 are £1.0 billion, £0.4 billion higher than in the same period a year earlier, however, still down on previous years due to travel restrictions.

The data from HMRC includes tax receipts, National Insurance data HMRC tax receipts and National Insurance contributions for the UK.

According to 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 £718.2 billion.

“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 £18.6 billion. 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,” she said.

However, there are also reminders of the pandemic with the statistics around inheritance tax that surged past £6 billion in 2021/22 indicating the higher number of wealth transfers.

“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,” Ms Morrisey said.

“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.”

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