Tax take rises 30% in five years |
HMRC, the UK's tax authority, collected £757bn in taxes in the year to 31 October 2022, up from £584bn in 2015/16, official figures show. After rising by 30% over the five year period, taxes are set to soar further following Chancellor Jeremy Hunt’s Autumn Statement. The Office for Budget Responsibility (OBR) estimates the tax burden is on course to hit its heaviest level since WWII with total UK government national account tax revenues expected to top £1tn in three years. The tax hikes risk harming investment levels further, analysts say. “Maintaining UK tax competitiveness will now be more important than ever . . . If the UK were able to stimulate business investment back to pre-pandemic levels, it would generate an estimated £11bn to the economy,” Jon Richardson, head of tax policy, PwC, said. Elsewhere, Paul Falvey, tax partner at BDO, believes simplification of the tax system would help: “The sad reality is that the tax system lacks coherence. New taxes and reliefs are overlaid on existing measures, with complex rules bolted on to prevent avoidance. The result is a system of such dizzying complexity it’s hardly surprising that so many businesses and individuals get it wrong.”