National statistics

HMRC tax receipts and National Insurance contributions for the UK (annual bulletin)

Updated 23 April 2024

Released 23 January 2024. Next release due Summer 2024.

About this release

This release provides an annual record of receipts over the last 20 years from tax and duties, National Insurance contributions (NICs), and fines and penalties that HM Revenue and Customs (HMRC) are responsible for collecting. Receipts are on a cash basis and so represent when a payment for a tax liability is received by HMRC.

This release focuses on annual cash receipts and receipts as a proportion of Gross Domestic Product (GDP) and includes provisional cash receipts data for the latest tax year 2023 to 2024. Receipts for 2023 to 2024 will be aligned to the Annual Report and Accounts later this year. To note that differences between these two publications occur as the latter presents data on an accrued basis.

The graphs in this release include annual receipts data (available in the statistics table for HMRC tax receipts and NICs for the UK) and receipts as a proportion of non-seasonally adjusted GDP available in the publication GDP deflators at market prices, and money GDP March 2024 (Budget 2024).

Receipts data in the more recent years are liable to revision, mainly for Corporation Tax as the totals are gross of provisional tax credits and due to the lag in return data becoming available, are subject to change. National Insurance Contributions (NICs), are also presented gross of provisional estimates for statutory payments and are subject to change.

Detail on methodology, quality and other information, useful websites and links are published in the quality report for HMRC tax receipts and National Insurance contributions for the UK.

Executive Summary

Total annual receipts in the tax year 2023 to 2024

HMRC collected £827.7 billion in taxes in 2023 to 2024, an increase of 5.0% from the year before.

During 2023 to 2024, receipts from Income Tax (IT), Capital Gains Tax (CGT), & NICs combined accounted for 56% of annual receipts. Over the last decade, IT, CGT, NICs & AL made up on average 55% of total annual receipts with VAT and Corporation Tax the next largest contributors, contributing an average 21% and 10% of total receipts respectively.

Further data on annual contributions by tax in percentage terms, are published in the statistics table for HMRC tax receipts and NICs for the UK on GOV.UK.

Total annual receipts, and receipts as a proportion of GDP

Annual receipts and receipts as a proportion of GDP since the tax year 2004 to 2005 are shown in Figure 1 below.

Figure 1. Annual receipts and receipts as a proportion of GDP

The data in figure 1 shows:

• since the tax year 2004 to 2005 with annual receipts at £375.8 billion, year on year growth has continued (with a reduction in 2008 to 2010 due to a period of economic slowdown) to £633.3 billion in the tax year 2019 to 2020
• receipts fell to £584.0 billion in 2020 to 2021 due to the economic impact of the COVID-19 pandemic and the subsequent government policies to support business and individuals
• receipts as a proportion of GDP over the last 20 years have been steady from 28.0% in 2004 to 2005, to 28.2% in 2019 to 2020, but after a fall to 28.0% in 2020 to 2021, have increased to 30.3% in 2023 to 2024
• receipts in the tax year 2023 to 2024 are £827.7 billion

Income Tax, Capital Gains Tax and National Insurance contributions

Annual receipts and receipts as a proportion of GDP since the tax year 2004 to 2005 are shown in Figure 2 below. Receipts for the tax years 2010 to 2011, through to, 2012 to 2013, include Bank Payroll Tax.

Figure 2. Annual receipts and receipts as a proportion of GDP

The data in figure 2 shows:

• receipts as a proportion of GDP in the tax year 2019 to 2020 were 15.4% compared to 16.4% in 2007 to 2008 and this fall can be partly attributed to structural changes such as above-inflation increases in the personal allowance
• growth in annual cash receipts since the tax year 2003 to 2004 has been fairly steady with a small reduction observed in 2009 to 2010 due to the economic slowdown
• the slight growth in receipts in the tax year 2020 to 2021, to £348.3 billion, is a smaller increase than in preceding years, and this is likely due to a combination of reduced economic activity leading to lower tax liabilities and deferral and non-payment of liabilities during the COVID-19 pandemic
• receipts in the tax year 2021 to 2022 have increased to £393.9 billion mainly due to strength in both employee earnings during 2021 to 2022 and some self-assessed income streams and asset disposals during 2020 to 2021, though also partly due to the deferred payments from the year before
• receipts in the tax year 2022 to 2023 are £442.7 billion (17.3% as a proportion of GDP), and this increase could be a combination of continued economic recovery following the pandemic, and increases to National Insurance rates which applied during some of the year
• receipts in the tax year 2023 to 2024 are £446.5 billion (17.1% as a proportion of GDP), slightly higher than the preceding year despite reductions to NICs rates and an increase to the primary threshold for employee NICs, reflecting pay growth and the impact of maintaining the personal allowance and basic rate limit at their 2022 to 2023 levels

Value Added Tax (VAT)

Annual receipts and receipts as a proportion of GDP since the tax year 2004 to 2005 are shown in Figure 3 below.

Figure 3. Annual receipts and receipts as a proportion of GDP

The data in figure 3 shows:

• a rise in receipts, as a proportion of GDP from 4.5% in the tax year 2009 to 2010 to 5.9% in 2011 to 2012, reflects changes in the VAT rate
• year on year growth continued until 2018 to 2019 where annual receipts reached £132.5 billion
• annual receipts in 2020 to 2021 fell to £101.6 billion, and this fall can be partially attributed to the VAT payment deferment policy
• receipts in 2020 to 2021 were further impacted by the temporary reduced 5% rate for hospitality, holiday accommodation and attractions, alongside wider economic impacts of COVID-19
• receipts in 2021 to 2022 increased to £157.5 billion, due to a combination of deferred payments from the year before and economic recovery from the COVID-19 pandemic
• receipts in 2022 to 2023 are £159.7 billion (6.3% as a proportion of GDP), and the relatively small growth compared to the previous year could be attributed to potentially both high levels of inflation and subsequent changes in real consumer expenditure
• this continued growth year to year from 2022 to 2023 and 2023 to 2024 in part can be explained by higher levels of inflation, as well as consumer spending remaining at levels similar to the period prior to the higher inflation

Business Taxes

This section includes Corporation Tax, Petroleum Revenue Tax, Bank Levy (from 2011 to 2012), Bank Surcharge (from 2016 to 2017), Diverted Profits Tax (from 2016 to 2017), Digital Services Tax (from 2021 to 2022), Energy Profits Levy (from 2022 to 2023), Economic Crime Levy and Electricity Generator Levy (from 2023 to 2024). Total receipts are gross of tax credits and, due to the lag in return data becoming available, are subject to change.

Annual receipts and receipts as a proportion of GDP since the tax year 2004 to 2005 are shown in Figure 4 below.

Figure 4. Annual receipts and receipts as a proportion of GDP

The data in figure 4 shows:

• annual receipts as a proportion of GDP, were 3.1% in 2007 to 2008 and this was driven by strong profits growth prior to the global financial crisis
• the subsequent falls observed in 2008 to 2009 and 2009 to 2010 were the result of declining company profits during this period
• receipts reached £65.6 billion (2.9% as a proportion of GDP) in 2019 to 2020, partly due to the introduction of a payment timing change for the largest companies which brought forward their quarterly instalment payments by four months, and had the effect of boosting receipts in this year
• in 2020 to 2021, receipts fell to £54.1 billion (2.6% as a proportion of GDP) mainly due to the economic impacts of the COVID-19 pandemic, alongside a reduction of the receipts boost from the payment timing change mentioned above
• receipts in 2021 to 2022 increased to £67.4 billion (2.9% as a proportion of GDP) reflecting a strong economic recovery from the COVID-19 pandemic
• receipts in 2022 to 2023 are £84.9 billion (3.3% as a proportion of GDP) partly due to higher offshore receipts, as a result of high energy prices following Russia’s invasion of Ukraine, and the new Energy Profits Levy
• receipts in 2023 to 2024 are £95.2 billion (3.5% as a proportion of GDP) largely due to the increase in the main rate of Corporation tax from 19% to 25% alongside the new Electricity Generator Levy, partly offset by lower offshore receipts

Stamp Taxes including Annual Tax on Enveloped Dwellings (ATED)

Annual receipts and receipts as a proportion of GDP since the tax year 2004 to 2004 are shown in Figure 5 below.

The data includes receipts from ATED from September 2013, and the impact of First Time Buyers’ Relief from November 2017. The data excludes receipts for Stamp Duty Land Tax (SDLT) devolved to Scotland from April 2016, and SDLT devolved to Wales from April 2018.

Figure 5. Annual receipts and receipts as a proportion of GDP

The data in figure 5 shows:

• receipts have grown from £9.0 billion in 2004 to 2005 to £14.9 billion in 2023 to 2024 (0.5% as a proportion of GDP), mainly in line with the performance of the housing market and SDLT policy changes
• the fall in 2008 to 2009 reflects a period of economic slowdown, with receipts beginning to recover in 2013 to 2014
• the large increase observed from 2013 to 2014 onwards was mainly due to higher property prices and numbers of transactions, as well as major policy changes to the marginal rates and thresholds for residential SDLT (including an increase in the tax rates for residential properties priced above £925,000, introduced in December 2014)
• the growth in receipts continued in 2016 to 2017 due to the introduction of higher duty rates on additional dwellings in April 2016 and which continued through 2017 to 2018 when receipts reached £16.6 billion
• the falls observed from 2018 to 2019 onwards are due to a combination of market uncertainties and a full year of First Time Buyers’ Relief claims, which came into effect in November 2017
• lower receipts in 2020 to 2021 is mainly due to a fall in property sales, market uncertainties surrounding the COVID-19 pandemic and the introduction of the temporary reduced rates for SDLT on residential properties
• receipts in 2021 to 2022 increased to £18.6 billion and can partly be explained by higher numbers of transactions completed before the end of the SDLT holiday which ended on the 30 June (residential nil-rate band of £500,000) and 30 September (residential nil-rate band of £250,000)
• receipts increased further by £0.7 billion to £19.3 billion in 2022 to 2023 and could be explained by a combination of increases in average property prices and the end of the SDLT holiday
• receipts decreased to £14.9 billion in 2023 to 2024 and could be explained by a combination of fall in the number of property transactions and increases to the nil rate tax band for residential properties for both first and non-first time buyers from September 2022

Hydrocarbon Oil (fuel duty)

Annual receipts and receipts as a proportion of GDP since the tax year 2004 to 2005 are shown in Figure 6 below.

Figure 6. Annual receipts and receipts as a proportion of GDP

The data in figure 6 shows:

• in cash terms, receipts from 2004 to 2005 have broadly continued to slowly rise to £28.0 billion in 2018 to 2019 whilst as a proportion of GDP, receipts over this same period, fell from 1.7% to 1.3%
• the slight fall in 2019 to 2020 to £27.6 billion , is in part due to uncertainties surrounding the onset of the COVID-19 pandemic
• receipts in 2020 to 2021 fell to £20.9 billion due to the significant economic impacts of the pandemic and associated restrictions on travel
• receipts of £25.1 billion in 2022 to 2023 fell from £25.9 billion in 2021 to 2022, and this could be the net result of decreases in Unleaded petrol and Gas oil receipts being partially offset by increases in Bioethanol and Biodiesel receipts
• receipts in 2023 to 2024 are £24.8 billion (0.9% as a proportion of GDP) and this continued fall in receipts is primarily driven by a fall in diesel receipts due to a general move away from diesel towards alternative fueled vehicles, including electric and hybrid electric vehicles.

Tobacco Duty

Annual receipts and receipts as a proportion of GDP since the tax year 2004 to 2005 are shown in Figure 7 below.

Figure 7. Annual receipts and receipts as a proportion of GDP

The data in figure 7 shows:

• as a proportion of GDP, there has been a gradual decrease from 0.6% in 2004 to 2005, to 0.3% in 2023 to 2024
• since the tax year 2004 to 2005, annual receipts were relatively stable, rising slightly to £8.2 billion in 2008 to 2009, after which they rose over the next few years to £9.7 billion in 2012 to 2013, mainly due to an increase in duty rates
• since 2016 to 2017, receipts have fallen slightly with increases in duty rates offset by the continuing long-term decline in smoking and down trading to cheaper cigarettes and other tobacco products
• the increase observed in 2018 to 2019 could be due to changes in the timings of budget and trader behavior
• receipts in 2020 to 2021 increased to £10.0 billion, largely as a result of increases in duty rates
• receipts in 2022 to 2023 are £10.0 billion (0.4% as a proportion of GDP), a slight decrease from £10.3 billion in 2021 to 2022, and could be due to the unwinding of COVID-19 impacts such as the uplifting of travel restrictions which allowed for more opportunity to purchase off-duty cigarettes and the continued shift towards other tobacco products, which have lower duty rates
• receipts in 2023 to 2024 are £8.8 billion (0.3% as a proportion of GDP), and this further decrease from the year before aligns with governmental objectives to reduce uptake and use of tobacco products across the country as the duty tax was partly designed with this in mind

Alcohol Duty

Annual receipts and receipts as a proportion of GDP since the tax year 2004 to 2004 are shown in Figure 8 below.

Figure 8. Annual receipts and receipts as a proportion of GDP

The data in figure 8 shows:

• receipts as a proportion of GDP have remained relatively stable over the last 20 years from 0.6% in 2004 to 2005, to 0.6% in 2021 to 2022
• over this same period, growth in annual cash receipts has been steady, reaching a peak in 2021 to 2022 of £13.1 billion
• a slight fall to £11.8 billion in 2019 to 2020 followed by an increase to £12.1 billion in 2020 to 2021 can be attributed mainly to an increase in spirits and wine duty receipts, partly due to payment timing effects in March 2020 associated with the initial COVID-19 lockdown
• receipts in 2022 to 2023 are £12.4 billion (0.5% as a proportion of GDP), a decrease of £0.7 billion compared to 2021 to 2022 and could be explained by the COVID impact unwinding where we previously saw an increase in off-trade consumption due to lockdown which increased duty receipts
• receipts in 2023 to 2024 are £12.7 billion (0.5% as a proportion of GDP), slightly higher than in the year before

Environmental taxes

Annual receipts and receipts as a proportion of GDP since the tax year 2004 to 2005 are shown in Figure 9 below.

Environmental taxes include receipts from Landfill Tax (LFT), Climate Change Levy (CCL), Aggregates Levy, Carbon Price Floor (CPF), from 2013 to 2014, and Plastic Packaging Tax from 2021 to 2022. The data excludes receipts for LFT devolved to Scotland (from 2015 to 2016) and LFT devolved to Wales (from 2018 to 2019).

Figure 9. Annual receipts and receipts as a proportion of GDP

The data in figure 9 shows:

• overall environmental tax receipts as a proportion of GDP have remained stable over the last 20 years from 0.13 % in the tax year 2004 to 2005, to 0.13 % in 2021 to 2022
• over this same period, receipts gradually increased reaching a peak of £3.1 billion in 2016 to 2017, and the large increases observed in 2013 to 2015 are mainly due to an increase in CCL receipts following the introduction of CPF
• following the peak in 2016 to 2017, receipts over the following 3 years decreased slightly though remained constant at around £3.0 billion reflecting a gradual increase in CCL (and CPF) receipts, alongside a gradual decline in receipts from LFT as a result of operators moving away from landfill to other methods of dealing with waste
• receipts in 2020 to 2021 fell to £2.7 billion due to economic impacts of the COVID-19 pandemic, but have increased back up to £3.0bn in 2021 to 2022
• receipts in 2022 to 2023 are £3.1 billion (0.12% as a proportion of GDP), and the increase from the year before can be explained by the introduction of the new Plastic Packaging Tax from April 2022
• receipts in 2023 to 2024 have fallen to £2.9 billion (0.1% as a proportion of GDP) across almost all Environmental taxes, partially driven by a decrease in CCL receipts followed by a drop in CPF , LFT as well as AGL

Air Passenger Duty

Annual receipts and receipts as a proportion of GDP since the tax year 2004 to 2005 are shown in Figure 10 below.

Figure 10. Annual receipts and receipts as a proportion of GDP

The data in figure 10 shows:

• receipts as a proportion of GDP have generally followed cash receipts
• over the last 20 years, receipts have risen from £0.9 billion in 2004 to 2005 to £3.6 billion in 2019 to 2020
• the sharp increase observed in 2007 to 2008, the gradual increase from 2010 to 2011 onwards, and a decrease in 2015 to 2016 are all related to policy changes including rate, exemption and banding changes
• since 2016 to 2017, receipts have steadily risen possibly due to increased passenger travel, though receipts in 2019 to 2020 are broadly in line with the previous year
• receipts in 2020 to 2021 fell significantly to £0.6 billion reflecting the large impact on the aviation sector and a fall in passenger flights due to the COVID-19 pandemic
• receipts in 2021 to 2022 are £1.0 billion, remaining at lower levels due to travel restrictions in place at the time
• receipts in 2022 to 2023 are £3.2 billion (0.1% as a proportion of GDP), and this large increase compared to the previous year can be explained by the lifting of travel restrictions previously in place
• receipts in 2023 to 2024 are £3.8 billion (0.1% as a proportion of GDP), and have returned to and surpassed pre-pandemic levels

Inheritance Tax

Annual receipts and receipts as a proportion of GDP since the tax year 2004 to 2005 are shown in Figure 11 below.

Figure 11. Annual receipts and receipts as a proportion of GDP

The data in figure 11 shows:

• over the last 20 years, receipts as a proportion of GDP have generally followed cash receipts
• the gradual increase in receipts from 2004 to 2005, through to, 2007 to 2008 is due to increases in the value of tax-liable assets in this period, particularly residential property
• due to both the introduction of the Transferable Nil Rate Band for deaths occurring from October 2007 and a fall in the value of most asset classes, receipts fell sharply in the second half of 2008 and in most of 2009
• since 2010 to 2011, receipts have increased both in terms of annual revenue and as a proportion of GDP
• the slight fall in receipts in 2019 to 2020 is most likely due to the introduction of the Residence Nil Rate Band threshold, which had been introduced in stages since 2017 to 2018
• receipts in 2019 to 2020 were also affected by the Ministry of Justice’s announcement of an increase in probate fees from April 2019 (subsequently cancelled) which caused some executors to bring forward their tax payments (into 2018 to 2019) to avoid the prospective higher fees
• receipts increased in 2020 to 2021 compared to the previous year (although remained slightly below 2018 to 2019 levels), and this increase is likely in part due to the higher number of wealth transfers that took place during this tax year, itself the result of higher-than-usual deaths due to the effect of COVID-19 pandemic
• receipts in 2021 to 2022 increased to £6.1 billion, likely due to higher volumes of wealth transfers following recent IHT-liable deaths, rises in asset values and the government’s March 2021 and Autumn 2022 decisions to maintain the tax free thresholds at their 2020 to 2021 levels up to and including 2027 to 2028 (more information is available in the policy papers accompanying the Budget 2021 Finance Bill and the Autumn Finance Bill 2022)
• growth in receipts from 2022 to 2023 is also likely due to a combination of the recent rises in asset values and the government’s decision to maintain the IHT nil rate band thresholds at their 2020 to 2021 levels up to and including 2027 to 2028

Statistics on deaths in the UK are available from the Office for National Statistics, National Records Scotland and Northern Ireland Statistics and Research Agency websites.

Contacts

For any further information, queries or to provide feedback on this publication, please contact either K Mason or L Suckling at crosscuttingstatistics@hmrc.gov.uk.