21 October 2022
If you are covering the latest HMRC tax receipts and National Insurance contributions statistics, please see the following comment from Shaun Moore, tax and financial planning expert at Quilter:
“The latest HMRC data shows receipts from Income Tax and National Insurance payments from April to September 2022 were £190.4bn - £24.6bn higher than in the same period a year earlier. This will no doubt be good news for the current Chancellor who recently kickstarted a renewed tilt to austerity as he looks to shore up government spending plans ahead of the OBR forecast on 31 October.
“This increase likely reflects the uptick seen in average earnings over the past few months, though is somewhat surprising given the National Insurance threshold was increased to match the Income Tax threshold earlier this year which meant approximately 30 million people would pay less NI.
“In the coming months, should the reversal of the 1.25% National Insurance hike remain in place once a new Prime Minister is elected, we could well see a dip in the Treasury’s takings.
“Elsewhere, the data shows that the tax take from Inheritance Tax marches ever higher as house prices continue to grow. IHT is steadily becoming rather lucrative for the Treasury, with IHT receipts for April to September 2022 up to £3.5bn. This is an increase of £0.4bn compared to the same period a year earlier.
“IHT was once viewed as a tax on wealthier individuals, but the reality is that more people are now getting caught in the IHT net – partly as a result of soaring property prices. The Nil Rate Band and the Residence Nil Rate Band will remain frozen until 2026, meaning more and more people, including many families that might not consider themselves to be wealthy, could now face a hefty IHT bill due to amount their properties have increased in value.”
