HMRC's latest tax statistics indicate a significant £11 billion increase in total tax receipts for the period of December to February compared to the same time last year. This rise can partly be attributed to fiscal drag from frozen tax bands, pushing workers into higher tax brackets. While self-assessment income tax is slightly lower, overall income tax collections have increased by £1.65 billion. VAT revenues have also grown due to inflation impact, suggesting improved revenue despite austerity measures anticipated in the Spring Statement, easing pressure on Treasury decisions.
HMRC's total receipts across the busy period of December to February were £11bn higher in 2024/25 than 2023/24.
Despite income tax being collected via self-assessment being £388 million lower in February 2025 than for the same month last year, total income tax receipts are actually up £1.65bn.
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