20 September 2024
If you are covering the latest HMRC tax receipts and national insurance contributions data, please see the following comment from Shaun Moore, tax and financial planning expert at Quilter:
"The latest figures from HMRC reveal that inheritance tax (IHT) receipts climbed to £3.5 billion in April to August 2024, an increase of £0.3 billion compared to the same period last year. This continued uptick in IHT receipts, which puts it on course for another record breaking year, will no doubt stoke the rumours and debates about whether the tax will be increased ahead of Labour’s first budget.
“As Labour navigates the complex issues surrounding IHT in the upcoming budget, there is a strong argument for simplifying the IHT system and making it more appealing to gift during one’s lifetime. The complexity of the current system often leads to confusion and inequities. A simpler system could help reduce the administrative burden for both taxpayers and HMRC, while also making it fairer. Similarly, increasing the gifting threshold would encourage earlier wealth transfer, reducing future IHT liabilities, and could boost consumer spending.
"Elsewhere, PAYE income tax and national insurance receipts for April to August 2024 also climbed to £179.7 billion. This is £5.1 billion higher than the same period last year.
“Labour has repeatedly pledged not to increase taxes on working people, but the combination of frozen income tax thresholds and wage growth continues to push more and more people into higher tax brackets, boosting government coffers in the process. With thresholds frozen until 2028, Labour’s pledge will be significantly watered down as more people are dragged into paying more tax regardless.”
