Self-Assessment income tax, national insurance and corporation tax have boosted HMRC’s tax receipts to £567 billion for the year to March 2017, an increase of £33 billion compared to the previous year.
These statistics published by HMRC on Tuesday 25th April indicate the rise is equivalent to 6.2% with Self-Assessment income tax, national insurance and corporation tax showing annual rises of 18%, 8% and 12% respectively.
Frank Nash, partner at Blick Rothenberg, said: “This points to a strengthening economy and higher profits in the small and medium size business sectors. It is estimated that approximately 10% of the rise in tax revenues was through smaller companies paying increased dividends in Q1 2016.
“The challenge will be to retain this level of receipts over the next two years if economic growth slows during the Brexit negotiations. New tax raising measures coming into force that will affect larger corporate businesses, buy-to-let landlords and the consumer in the form of increased insurance tax will help offset any slowdown in the short term."
Frank added: “The property sector is a mixed picture, with the number of property transactions down 172,000 for the year and agents reporting a reduction in the South East mainly. Stamp Duty Land Tax receipts are, however, a different picture with receipts for the year standing at £11.7 billion.
“This is almost double the amount of tax collected five years ago and underlines gradual increases in the tax rate over that period and a strengthening commercial market in England.”
For more information please contact Frank Nash at firstname.lastname@example.org