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Joel Muckett 26 Oct 2017 10:28am

Record £569.3bn tax yield for HMRC

HMRC’s tax take has made its biggest leap since the recession, increasing by £35.6bn in the last year

The Revenue’s receipts were boosted by 6.7% to £569.3bn in 2016/17, according to national accountancy group UHY Hacker Young.

UHY said taxes targeting wealthy individuals had been a catalyst for the rise in income.

Income for Capital Gains Tax increased by 19% to £8.4bn over the past year, while National Insurance Contributions (NICs) rose 10% to £124.9bn.

Stamp Duty Land Tax also saw a 10% rise from £10.7bn to £11.8bn, due to it being increased on homes worth more than £1m.

Finally, income from inheritance tax increased by 3.8% to £4.82bn.

“The last year has been a bumper one for the taxman, primarily thanks to bringing in more money from wealthier individuals and entrepreneurs,” said UHY Hacker Young partner Andrew Snowdon.

Snowdon warned the high tax burden ran the risk of disincentivising entrepreneurs.

“The many tweaks made to National Insurance Contributions over recent years have results in a big jump in income as more people pay higher rates of NICs,” he said.

Snowdon added that entrepreneurs and other self-employed people who previously opted out of state pension were forced to pay NICs due to the changes introduced last year.

Last month, HMRC boosted its take from diverted tax profits raising £281m, which exceeded its estimate of £275m.
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