Latest HMRC statistics suggest the total tax take is starting to rise as the economy moves into recovery, with higher levels of receipts driven primarily by increases in the amounts received from income tax, NICs and stamp duty land tax (SDLT) and VAT in particular in the second half of last year.
Looking at the figures on an annual basis, total HMRC receipts for January to December 2013 are £19.5bn higher than in 2012, with total income tax receipts up by £7bn and PAYE receipts £1.5bn higher, according to analysis by Blick Rothenberg.
Nimesh Shah, Senior Manager at Blick Rothenberg, said: 'There are more people in jobs, as we know from the latest employment figures, and so there are more people spending more, resulting in higher VAT receipts. Coupled with the fact that there were over one million property transactions in 2013, all these factors are strong indicators of a hopefully resurgent economy in 2014.
The latest figures show that receipts from income tax, capital gains tax and NICs rose by 5.1% from April to December 2013 compared to the same period the previous year. HMRC says this was down to a combination of higher PAYE, income tax and NICs receipts and, to a lesser extent, lower repayment. It says receipts were also boosted by a decline in personal pension rebates, which were abolished from 2012-13.
VAT receipts are now at a peak of £100.6bn for the tax year 2012-13, up from £70.2bn in 2009-10 and £98.3bn last year. The latest HMRC breakdown shows the VAT take rose again in Q4 2013 compared with the same period in 2012.
The tax take from SDLT payments has increased significantly, with receipts for April to December 2013 4.6% higher than last year. December's SDLT receipts totalled £960m, the highest for several years. The current housing boom has seen receipts on land and property rise by 31.8% higher, which HMRC says is mainly due to the introduction of the 7% rate on residential property transactions worth over £2m.
There has also been a rise in transaction volumes for both residential and commercial properties. The number of residential property transactions in 2013 was over 1m and averaged 100,000 transactions per month in the last six months of the year.
Receipts from shares are 38% higher than last year, partly due to an unusually high repayment last year, and partly due to increases in volumes and prices over the year, according to HMRC. Corporation tax payments, however, have remained largely steady over the year.
