Research from The Global Payroll Association found that UK PAYE employees paid £252bn in income tax in 2024, marking an 8.6% annual increase. This accounted for 29.7% of £849bn collected by HMRC, with PAYE contributing 86.6% of income tax revenue, up from 84.3% in 2021. Employee National Insurance Contributions dropped by 18.8% to £51bn, while employer NICs surged to £114bn, a 6.8% increase, with further hikes anticipated following Labour's Autumn Budget changes. Melanie Pizzey, CEO of GPA, highlighted the long-term growth in tax collections.
The government is collecting a huge amount of income tax from PAYE employees, with the totals increasing year on year since at least 2013, bar a small pandemic-induced dip in 2020.
Employer NICs for 2024 totaled £114bn, marking the highest total seen in the last decade and reflecting an annual increase of +6.8%.
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