Tax revenues on path to recovery

Government statistics to June 2020 show that tax revenues returned to near normal levels in June, after significant falls in April and May. Robert Pullen, partner at Blick Rothenberg said: ‘The total tax receipts for June were down only 15% on June 2019, compared to around 43% for April and May – a significant improvement and a step in the right direction’.

Income tax receipts in particular seem to have stabilised, being only £200m lower compared to June 2019. Figures for VAT are more difficult to assess, with the VAT deferral scheme applying up to 30 June, while property transactions remain subdued. Pullen noted that ‘overall the tax take is still down by 7% on last year but given what everybody has been through this is not surprising’.