PAYE income tax and employee national insurance contribution (NICs) receipts for April 2025 to July 2025 were £160.6bn, a staggering £13.5bn higher than the same period last year. Signs that fiscal drag is producing results for the Treasury could not be clearer.

In July 2025 alone total self assessment income tax hit £15.48bn, up from £12.76bn in July 2024. A similar hike in employees NICs was also reported by HMRC, with the monthly take hitting £4.19bn, up 5% from £3.97bn just 12 months ago. However, employee NICs also raised significantly more tax than before Jeremy Hunt’s 4% cuts in early 2024.

Meantime, the inexorable pain of the increased employer NICs is reflected in the monthly tax receipts, with the figure hitting a record £12.85bn, up £2.4bn from July 2024. This means the chancellor is well on track to claw in more than £24bn from her unpopular jobs tax.