Tax yield by tax
This table has been compiled from data supplied by HMRC and the Office of National Statistics.
| Financial Year |
2020-21
£m
|
% |
2019-20
£m
|
% |
2018-19
£m
|
% |
| Income Tax (IT) |
193,742 |
31.1% |
193,243 |
28.9% |
191,031 |
29.2% |
| PAYE Income Tax (included in IT) |
166,820 |
|
164,841 |
|
161,909 |
|
| SA Income Tax (included in IT) |
31,186 |
|
32,185 |
|
31,518 |
|
| National Insurance Contributions |
143,460 |
23.0% |
142,871 |
21.4% |
136,646 |
20.9% |
| Capital Gains Tax |
11,131 |
1.8% |
9,826 |
1.5% |
9,197 |
1.4% |
| Apprenticeship Levy |
2,910 |
0.5% |
2,798 |
0.4% |
2,713 |
0.4% |
| Value Added Tax |
101,650 |
16.3% |
129,885 |
19.4% |
132,177 |
20.2% |
| Corporation Tax (CT) |
50,985 |
8.2% |
61,106 |
9.1% |
54,272 |
8.3% |
| Offshore (included in CT) |
498 |
|
1,274 |
|
1,912 |
|
| Bank Levy |
2,343 |
0.4% |
2,472 |
0.4% |
2,565 |
0.4% |
| Bank Surcharge |
1,420 |
0.2% |
1,978 |
0.3% |
1,904 |
0.3% |
| Diverted Profits Tax |
140 |
0.0% |
5 |
0.0% |
12 |
0.0% |
| Petroleum Revenue Tax |
-241 |
0.0% |
- 408 |
-0.1% |
- 744 |
-0.1% |
| Hydrocarbon Oil (Fuel duties) |
20,932 |
3.4% |
27,573 |
4.1% |
27,993 |
4.3% |
| Inheritance Tax |
5,326 |
0.9% |
5,122 |
0.8% |
5,359 |
0.8% |
| Stamp Duty Shares |
3,678 |
0.6% |
3,619 |
0.5% |
3,620 |
0.6% |
| Stamp Duty Land Tax |
8,668 |
1.4% |
11,601 |
1.7% |
11,942 |
1.8% |
| Annual Tax on Enveloped Dwellings |
111 |
0.0% |
128 |
0.0% |
139 |
0.0% |
| Tobacco duties |
9,964 |
1.6% |
8,804 |
1.3% |
9,290 |
1.4% |
| Spirits duties |
4,115 |
0.7% |
3,825 |
0.6% |
3,779 |
0.6% |
| Beer duties |
3,084 |
0.5% |
3,446 |
0.5% |
3,661 |
0.6% |
| Wines duties |
4,659 |
0.7% |
4,296 |
0.6% |
4,392 |
0.7% |
| Cider duties |
248 |
0.0% |
270 |
0.0% |
279 |
0.0% |
| Betting & Gaming |
2,837 |
0.5% |
3,019 |
0.5% |
2,985 |
0.5% |
| Air Passenger Duty |
585 |
0.1% |
3,641 |
0.5% |
3,636 |
0.6% |
| Insurance Premium Tax |
6,307 |
1.0% |
6,415 |
1.0% |
6,197 |
0.9% |
| Landfill Tax |
566 |
0.1% |
641 |
0.1% |
683 |
0.1% |
| Climate Change Levy |
1,778 |
0.3% |
2,004 |
0.3% |
1,922 |
0.3% |
| Aggregates Levy |
359 |
0.1% |
397 |
0.1% |
367 |
0.1% |
| Soft Drinks Industry Levy |
299 |
0.0% |
337 |
0.1% |
240 |
0.0% |
| Swiss Capital Tax |
-1 |
0.0% |
- |
0.0% |
- 1 |
0.0% |
| Customs Duties |
2,962 |
0.5% |
3,287 |
0.5% |
3,356 |
0.5% |
| Penalties |
445 |
0.1% |
641 |
0.1% |
720 |
0.1% |
|
Collected by HMRC
|
584,463
|
|
632,842
|
|
620,330
|
|
| Council tax |
38,446 |
6.2% |
36,241 |
5.4% |
34,831 |
5.3% |
| Business rates * |
? |
? |
? |
? |
? |
? |
| Total taxes |
622,909 |
100% |
669,083 |
100% |
655,163 |
100% |
*Business rates gross about £24,000m. These are only paid by businesses with business premises that do not currently qualify for small business rate relief and therefore if included in the above totals, they would account for roughly 3.5% of tax revenue. At Spring Statement 2018 the Chancellor announced that the next revaluation would be brought forward by one year to 2021, 4 years after the last revaluation. The revaluation was proposed to be based on market rental values at 1 April 2019. This revaluation was subsequently delayed to 2023, based on property values at 1 April 2021, owing to the Coronavirus pandemic.
How taxes are spent
How are our taxes spent by government?
This summary is compiled from the data provided to taxpayers in their individual tax accounts by HMRC. It shows the expenditure as a percentage of taxes collected by HMRC.
A summary of taxes collected by HMRC is on the previous tab.
This includes the years before the UK felt the full effects of the Coronavirus pandemic.
| | 2020-21 | 2019-20 | 2018-19 | 2017-18 | 2016-17 |
|---|
| Description | % | % | % | % | % |
|---|
| Welfare |
19.6 |
22.1 |
23.5 |
23.8 |
24.3 |
| Health |
21.9 |
20.5 |
20.2 |
19.9 |
20.3 |
| State Pensions |
10.1 |
12.4 |
12.8 |
12.8 |
12.9 |
| Education |
9.6 |
11.6 |
11.8 |
12 |
12.3 |
| Defence |
4.5 |
5.3 |
5.3 |
5.3 |
5.2 |
| National Debt Interest |
4.1 |
6.9 |
5.1 |
6.1 |
5.5 |
| Transport |
4.5 |
4.3 |
4.3 |
4.3 |
4.2 |
| Public Order and Safety |
3.9 |
4.3 |
4.3 |
4.3 |
4.2 |
| Business and Industry |
14.4 |
3.8 |
3.6 |
2.9 |
2.5 |
| Government Administration |
2.0 |
2.1 |
2.1 |
2.1 |
2.1 |
| Housing and Utilities, like street lighting |
1.4 |
1.8 |
1.6 |
1.6 |
1.5 |
| Environment |
1.3 |
1.5 |
1.5 |
1.6 |
1.6 |
| Culture, like sports, libraries, museums |
1.2 |
1.5 |
1.5 |
1.6 |
1.6 |
| Overseas Aid |
.9 |
1.1 |
1.2 |
1.2 |
1.1 |
| UK Contribution to the EU Budget |
.6 |
.8 |
1 |
.7 |
.7 |
| Total* |
100 |
100 |
100 |
100 |
100 |
| Council expenditure out of council tax ** |
|
|
|
|
|
| Council expenditure out of business rates *** |
|
|
|
|
|
*rounding means that these are not 100%
**Council tax is not collected by HMRC and so it does not analyse how it is spent. A summary is supplied by your local council.
***Business rates are not collected by HMRC but are redistributed to councils.
Sources
By way of a simplistic explanation of the figures and data sources:
- The Office of National Statistics (ONS) is in charge of collecting and analysing data on the UK's public finances.
- HM Revenue & Customs (HMRC) provides its own data on the taxes it administers and collects to the ONS and it also publishes it in limited form for taxpayers.
- The Office of Budget Responsibility (OBR) analyses the data to check that the government is on track with its promises, and the chancellor uses the OBR data in setting the Budget.
HMRC tax receipts and NICs
OBR Pubic Finances data bank 2019-20
OBR Pubic Finances data bank 2020-21
OBR Pubic Finances data bank 2021-22
Taxpayer business account summary (login in to your account)
Unsustainable debt
A report issued by TheCityUK in July 2020 estimated that c.£100 billion could arise in unsustainable debt as a result of the Coronavirus by the end of March 2021.
- By the end of March 2021, it is estimated that c.£32-36 billion of lending provided through Government lending schemes could become unsustainable with borrowers struggling to repay these loans.
- SMEs (with FTE < 250 employees) are estimated to incur around half of the total unsustainable debt, amounting to c.£50-56 billion by the end of March 2021.
- TheCityUK Over half of SME borrowed less than £50k.
- Regions outside of London could be particularly hard-hit, given that nearly c.75% of unsustainable debt is estimated to be held outside of London and that regional SMEs have reduced access to equity finance on favourable terms.
A way to resolve the mounting debt crisis could be by 'recapitalisation', this would involve creating a range of new instruments.
The report segmented the lending schemes and proposes a range of new instruments which could offer a path to recovery for different types of businesses, based on their size, their type of Government Covid-19 loan and the type of capital they need.
- For small businesses with a BBLS or small CBILS loan we propose the BRP which would convert the outstanding loan balance into a means-tested tax obligation, for businesses to repay through the tax system. Appropriate repayment incentives will need to be put in place to encourage repayment, which should be decided upon in conjunction with HMRC and HM Treasury.
- For SMEs with a CBILS loan, we propose the BRC which would help businesses convert their Government guaranteed loans into longer term subordinated debt or preferred share capital.
- A mechanism will be designed, to examine the application of the eligibility trigger and facilitate complaints handling.
- There is an opportunity for Government to advance policy objectives by attaching well-designed incentives and conditions. This could include conditions related to net zero emissions, employment practices, diversity and inclusion goals, tax transparency and responsibility, the levelling up agenda, and productivity improvements.
Funding of the debt repayment plan
The CityUK believe enabling the new instruments necessitates the establishment of a new entity the UK Recovery Corporation, in order to provide the flexibility, efficiency and governance required to oversee the management of new schemes
It is unlikely that private sector investors will be able to finance the UK Recovery Corporation initially, the report considers that the management of the UK Recovery Corporation should investigate the potential to attract private capital to fund SME growth via ordinary equity.
