Jan 25, 2023

Tax take hits £553 billion due to threshold freezes

HMRC data shows that tax receipts totalled £553 billion in the period from April to December 2022, reflecting across-the-board tax rises.

This is a 9.5% increase on the same period a year before when tax receipts stood at £505bn.

The main contributors to the increase are income tax, capital gains tax and National Insurance contributions (NICs), at £34bn.

As tax thresholds are set to remain frozen until 2028, the pressures of higher taxes are expected to grow for most workers across the country.

Business and stamp taxes have also accounted for an extra £9.4bn and £1.8bn respectively, partly due to the £1.7bn boost from the energy profits levy. Receipts from PAYE income tax and NICs were £281.1bn, which was £34.3bn higher than in the same period a year earlier.

The number of penalties for taxpayers has also risen due to HMRC ramping up its efforts to combat tax avoidance. So far this year, HMRC has issued £529m in penalties to taxpayers, compared with £416m last year.

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