Statistics released today show that HMRCs receipts in the last 12 months are £602bn, the first time this threshold has been passed in a 12-month period; say leading accounting, tax and advisory firm Blick Rothenberg.
Paul Haywood-Schiefer, a manager at the firm said: “Hitting the £600bn threshold represents an increase of 3.93% or £22bn on the previous year. This is buoyed by several taxes and the main increases we are seeing are coming in PAYE and NIC receipts due to low unemployment, but there are also increases in VAT receipts and Corporation tax, which itself has had a 6% rise.”
He added: “The Government has also had its first take from the new ‘sugar tax’, raising £61 million since its inception and inline for the Government’s target of £240 million for the year.”
Despite the new record tax take, SDLT receipts have remained largely flat on the last 12 months.
Nimesh Shah, a Partner at the firm said “In recent years, SDLT take has grown incredibly, but we are seeing a slowdown in property transactions, more than likely to be linked to higher rates of SDLT, the buy-to-let mortgage interest restriction and uncertainty over the UK property market with Brexit. Given where SDLT take was heading, the slowdown is quite remarkable.”
The statistics are not all rosy though, as despite a record take in July of £9bn (£1bn up on the previous 12 months), for self-assessment income tax receipts, overall self-assessment receipts are down 1.67%.
Nimesh added: “The down turn in self-assessment receipts overall could be linked to more internationally mobile individuals making moves away from the UK. We are aware of individuals leaving the UK for varying reasons, including recent changes to the personal tax regime, political uncertainties and of course Brexit. There has to be a worry about this population leaving the UK, and it is important that UK remains an attractive place for individuals to invest in and come to live for the future.”