HMRC to see big rebound in income tax

| May 5, 2010 | 0 Comments
”HMRC

HM Revenue & Customs (HMRC) has said the Government is expected to see a rise in income tax revenue this year.

Income tax revenue has plummeted over the last two years, one of the reasons is the recession which has hit tax revenues.

Tax receipts and corporation tax takings have been lower, as well as VAT revenues - the latter due to a cut in the VAT rate from 17.5% to 15%.

However, HMRC has said the Government expects to raise an extra £10 billion in income tax in 2010-11 - the majority coming from 40% and 50% rate taxpayers.

In the last financial year, higher-rate payers handed over £84 billion in income tax to the Revenue (more than half of the total), the combined higher and additional rate payers are forecast to pay a total of almost £93 billion in the current financial year.

In the meantime, there will be a 100,000 increase in the number of basic rate payers to 26.4 million - who collectively will pay an extra £1.2 billion, thereby handing over a total of £68.1 billion.

Overall, the Government’s income tax take will increase by an additional £10 billion this year to £161 billion - close to the levels of 2007-08.

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