Jessica Fino 26 Jul 2017 04:02pm

HMRC collects extra £6.9bn in corporate tax receipts

The Brexit vote and the fall in the value of sterling has led to a significant increase in HMRC’s corporation tax receipts, according to accountancy firm Blick Rothenburg

It found that HMRC collected a record £51.1bn last year, a 15.5% increase from the £45.5bn generated the previous year.

Paul Haywood-Schiefer, assistant manager at the firm, said, “Brexit seems to be working well as far as HMRC’s receipts of corporation tax are concerned.”

He pointed out that the decline in the value of sterling has been positive for UK companies exporting goods and services abroad, enabling them to sell more at higher margins, generate greater profits and pay more tax.

Meanwhile the income tax take was up £8bn over the same period, representing an increase of 4.77%.

Over half of the income tax receipts increase was due to tax taken through the self-assessment regime, Blick Rothenberg said, which was up by £4.4bn in the last year.

HMRC's annual report, published earlier this month, found that it generated £574.9bn in tax revenues, £38.1bn more than a year earlier.

Haywood-Schiefer said, “The increase to £575bn total receipts in the last 12 months represents a new landmark for the total tax receipts of the Treasury, and these continue to grow at pace. Based on this current growth the £600bn figure should be reached [by] around January 2018.

“Another notable increase is the growth in the self-assessment receipts over the last 12 months, which has contributed more than half of the total increase in the income tax receipts over that period.

“This would suggest those in partnerships or who are self-employed or have a personal property portfolio (typical people who would pay income tax through Self-Assessment) had a bumper year in the 2015/16 tax year.”

The report also found that customers calling the Revenue had their calls answered within three minutes and 54 seconds in 2016/17, with 91.7% of calls being handled.

The new figures were a vast improvement from statistics released in 2015, which found that the average waiting time to speak to an HMRC adviser was 38 minutes. according to research by Which?