Who pays most of the taxes in the UK?

In the 2022/23 tax year, the UK government received ￡787 billion in tax revenues. While this is split between personal and corporation taxes, the main drivers are income tax, national insurance, VAT, and corporation tax. We will now take a look at the breakdown of tax revenues and some interesting tax-related facts.

The government receives taxes from various channels

As we touched on above, there are four main tax drivers, but there are also other income streams that contribute to the government’s tax revenues. The total list includes:-

• Income tax at ￡247 billion per annum
• National insurance contributes ￡176 billion per annum
• VAT comes in at ￡160 billion
• Corporation tax was ￡81 billion in the 2022/23 tax year
• Fuel duty raised ￡25 billion
• IHT brought in ￡7 billion

An additional ￡91 billion came from other sources, for a total of ￡787 billion, which is expected to rise to ￡950 billion in the 2023/24 tax year.

Interesting facts about taxation

There are many myths, mysteries, truths and untruths regarding taxation in the UK, both from a personal and a business point of view. Did you know, for example:-

• ￡83 billion of tax income from the 2022/23 tax year was used to pay interest on government debt
• At the end of September 2023, government debt stood at ￡2.65 trillion
• The top 50% of taxpayers contribute more than 90% of all tax revenues
• Approaching 50% of potential taxpayers in the UK pay no tax

In a more comprehensive article (ADD ARTICLE LINK) published on our website, we have listed several additional tax facts and take a more in-depth look at tax revenue streams.

Summary

The levels of tax raised by the UK government, both from a personal and business perspective, reiterate the need to manage your tax liabilities. This is an area where we excel, with several advisers able to review and advise ways in which you can perhaps reduce your tax liabilities going forward. Please feel free to call us at your convenience to discuss the matter in more detail.

Read the full article here.