[ad_1]
HMRC’s receipts for the month of January 2025 were close to £112bn, nearly £3.9bn more than the prior record haul of January 2023, say leading audit, tax and business advisory firm, Blick Rothenberg.
Tom Goddard, a Senior Associate at the firm said: “Leading the way were income tax receipts which rose by £6.8bn to just under £50bn for a single month, another record.”
He added: “Records have fallen by the wayside this month, and this is certainly no ‘Dry January’ as far as HMRC is concerned.
The January 2025 figures have broken the record for tax takings in a single month with HMRC receiving £111.7bn.”
Tom said, “The January 31st deadline for self-assessment tax returns clearly spurred many into action, with HMRC receiving £25.8bn tax via self-assessment tax returns.
“This figure contributed to a total income tax taking of just shy of £50bn for January 2024 which itself is up nearly £6.9bn from the previous January’s total. That is more than double the rise of the previous year, a phenomenal increase. The last 12 months’ income tax receipts are close to a £26bn increase on the 12 months prior.
“The figures will prove optimistic reading for HM Treasury off the back of speculation that the Office for Budget Responsibility (OBR) are likely to publish less than optimistic March forecasts, thus leaving the Chancellor with little fiscal headroom. The continuing upwards trend for tax takings will no doubt inform the Chancellor’s financial outlook as she looks ahead to her first Spring Statement and how best to tackle this.”
Tom added, “January also represents a significant month from a capital gains tax (CGT) perspective, as it marks the deadline for paying any CGT owed on assets other than UK property for the previous tax year.
“The January 2024 CGT intake saw a £339m decrease compared to last year’s figure with the total CGT collected for the 2024 tax year being £27mn lower than 2023, possibly suggesting a more risk averse behaviour amongst investors.
“Following on from the Chancellor’s 2024 Autumn budget, we will be seeing an increase in CGT rates from October 2024. Whether this increase will materialise in higher CGT takings for HMRC, or if the opposite will occur with investors reluctant to sell remains to be seen.”
[ad_2]
Source link
