"There will be no 'January Blues' for the revenue who will see a tax take boom due to the fast-approaching self-assessment deadline and trend of increasing tax receipts year on year. Millions of taxpayers will need to pay their 2024/25 tax bills before the 31st January self-assessment tax return filing deadline, boosting January's tax take. This is against the background of an overall rise in tax take year on year."
"The cause of the overall increase in tax take is the impact of the Chancellor, Rachel Reeves, direct tax rises, such as the increase in employer's National Insurance Contributions (NIC) to 15% and 'fiscal drag.' This is the process whereby more and more taxpayers are pushed into ever higher rates of tax because of frozen tax bands and thresholds due to the impact of wage inflation rather than genuine, economic increases in their income."
"Due to these factors among others, the Government's tax receipts for a 12-month period may actually exceed £1tn for the first time in the near future. They were approximately £910bn for the year to December 2025 and will certainly exceed that figure over the coming three months. But the increased inflation and increase in joblessness, which are both at least partly due to some of Rachel Reeves tax increases on employers will actually undermine her longer-term economic plans"
HMRC's January receipts will surge as millions pay 2024/25 self-assessment bills by the 31 January deadline, substantially boosting tax intake. Total tax revenues for the 12 months to December 2025 rose by over 7%, more than £60bn compared to the prior year. Employers will pay taxable bonuses in the next 2–3 months, supporting further receipts through the April 5 tax-year end. Direct tax increases, including employer NIC rising to 15%, and fiscal drag from frozen tax thresholds are pushing taxpayers into higher rates. Government receipts may exceed £1tn annually, though higher inflation and rising joblessness could undermine longer-term economic plans.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]