Figures released by HMRC show that total tax receipts in the 12 months to May 2022 were up by 16% compared to the previous 12-month period, with £733bn collected compared to £630bn.
The statistics reflect increases in receipts from VAT (£29.4bn), income tax (£26.1bn) and corporation tax (£14.4bn) over the period.
Commenting on the increased VAT receipts, Alan Pearce, VAT partner at Blick Rothenberg, said: ‘this was expected, mainly due to the payment of VAT that businesses were allowed to defer during the covid period. Going forward VAT receipts are likely to fall back as these deferred payments drop out of the figures ... and could even fall further if consumer spending slows more rapidly than the increases caused by the current rate of inflation’.
Paul Haywood-Schiefer, a senior manager at the firm noted that ‘CGT receipts also continued to grow with £14.9bn taken in the last 12 months (up 30.9% from the previous 12 months total of £11.4bn ... aided by the requirement to accelerate CGT payments on residential property transactions within 60 days of completion’.
Haywood-Schiefer also highlighted the impact of the increased rates of NICs from 6 April 2022 with an extra £5bn collected in April and May 2022 noting that, although the 6 July threshold changes will lessen the burden for some taxpayers, many others ‘are going to still be worse off from where they were in the previous tax year, and that is before the current high rates of inflation are factored in’.
The firm also points out that increased tax receipts give the chancellor potential extra headroom to bring forward further support measures for those who are struggling with the cost of living.
HMRC also publishes separate annual statistics for tax receipts. Figures released in April 2022 revealed that HMRC collected £718.2bn in taxes in 2021/22, an increase of 22.9% from the previous tax year.
Figures released by HMRC show that total tax receipts in the 12 months to May 2022 were up by 16% compared to the previous 12-month period, with £733bn collected compared to £630bn.
The statistics reflect increases in receipts from VAT (£29.4bn), income tax (£26.1bn) and corporation tax (£14.4bn) over the period.
Commenting on the increased VAT receipts, Alan Pearce, VAT partner at Blick Rothenberg, said: ‘this was expected, mainly due to the payment of VAT that businesses were allowed to defer during the covid period. Going forward VAT receipts are likely to fall back as these deferred payments drop out of the figures ... and could even fall further if consumer spending slows more rapidly than the increases caused by the current rate of inflation’.
Paul Haywood-Schiefer, a senior manager at the firm noted that ‘CGT receipts also continued to grow with £14.9bn taken in the last 12 months (up 30.9% from the previous 12 months total of £11.4bn ... aided by the requirement to accelerate CGT payments on residential property transactions within 60 days of completion’.
Haywood-Schiefer also highlighted the impact of the increased rates of NICs from 6 April 2022 with an extra £5bn collected in April and May 2022 noting that, although the 6 July threshold changes will lessen the burden for some taxpayers, many others ‘are going to still be worse off from where they were in the previous tax year, and that is before the current high rates of inflation are factored in’.
The firm also points out that increased tax receipts give the chancellor potential extra headroom to bring forward further support measures for those who are struggling with the cost of living.
HMRC also publishes separate annual statistics for tax receipts. Figures released in April 2022 revealed that HMRC collected £718.2bn in taxes in 2021/22, an increase of 22.9% from the previous tax year.
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