Amount of income tax paid by self employed increases 18%
The amount of self assessment income tax paid in the UK has increased 18% to £599m in March 2017 compared to £333m last year, with HMRC collecting £33bn more taxes over the past year, according to HMRC’s tax collection statistics
26 Apr 2017
Income tax, national insurance and corporation tax have boosted HMRC’s tax receipts to £567bn for the April 2016 to March 2017, an increase of £33bn (6.2%) compared toApril 2015 to March 2016, with self assessment income tax showing an increase of 18% to £599m. National insurance has increased 8% to £1bn and corporation tax has risen 12% to £2.3bn.
Total income tax (PAYE and self assessment) has increased to £1.4bn compared to £1.2bn in March 2016.
In the tax year 2007/8, when the UK suffered a financial crash, the amount of income tax paid was £15.1bn compared to £17.6 paid in 2016/17.
Frank Nash, partner at Blick Rothenberg, said: ‘This points to a strengthening economy and higher profits in the small and medium size business sector. It is estimated that approximately 10% of the rise in tax revenues was through smaller companies paying increased dividends in Q1 2016.
‘The challenge will be to retain this level of receipts over the next two years if economic growth slows during the Brexit negotiations. New tax raising measures coming into force that will affect larger corporate businesses, buy-to-let landlords and the consumer in the form of increased insurance tax will help offset any slowdown in the short term.’