Total tax take doubled to £827bn since 2010

Total tax take doubled to £827bn since 2010

May 7, 2024

Since the Conservatives took over in 2010 total tax receipts have almost doubled to £827bn with the largest rise of £130bn in 2021/22

HMRC receipts are up by £40bn from 2022-23 but have almost doubled since 2010 to £827bn. In 2010 the total tax take was £453bn.

Income tax has also drastically increased by £120bn to £273bn in 2023. The last two years have both seen an increase of £30bn, the highest rise in the last decade.

This is split between PAYE income tax (£235bn) and self-assessment (£42.6bn).

Corporation tax has also double over the last decade, to £86bn. Corporation tax was increased to 25% in 2023, as a result HMRC took an additional £10bn in 2023/24.

Nigel Holmes, director, R&D at Ryan: ‘Business taxes are bringing in a record amount of money for HMRC, with total receipts for the 2023/2024 tax year up £10.3bn compared to the year before.

‘The Chancellor’s decision to hike corporation tax up to 25% will be the main driver behind this surge in extra cash collected.

‘Higher taxes, alongside stubborn inflation and the UK’s largest minimum wage increase coming into effect this month, will squeeze businesses. With no relief in sight from the government, businesses must look to find savings by claiming all possible tax relief.’

In 2010, capital gains tax taken through the entire year was £3.6bn, increasing year on year to a total of £15.4bn, although, this is down from £16.9bn in 2022/23.

Additionally, national insurance contributions (NICs) from employees and employers have flown up by £80bn since 2010 but have not changed overall from the 2022/23 tax year. With employee NICs now being reduced to 8p in April 2024, it should begin to show the difference it will make from next month’s data.

The 2p cut from January has brought the NICs’ take down by £300m when compared to March 2023.

Inheritance tax (IHT) has surpassed last year’s figure by £400m to £7.49bn when 10 years ago this brought in £2.7bn. From 2021-22 the total IHT receipts rose by over £1bn, which is the largest rise, said to be due to a larger number of wealth transfers taking place during the pandemic.

Laura Hayward, tax partner at Evelyn Partners: ‘This record IHT haul for the Treasury is hardly surprising given the quite purposeful freezing of the tax-free allowance since as far back as 2009.

‘The average UK house price alone has increased by approximately 82.7% since then.

‘With no end to the freeze in nil-rate bands in sight there will be an escalation in IHT liabilities, if rules remain the same – not least because there is a massive transfer of wealth in the offing in the next couple of decades.

‘Research shows that the older generations have as much as £2.6 trillion of equity tied up in their homes, which the next generation or the one after are set to inherits.