Repaid VAT triggers spike in tax receipts

Tax receipts for April to July 2021 came to £226.2 billion, £76bn higher than in the same period a year earlier, data from HMRC shows.

The tax authority warned against making too many comparisons between the two periods because they were skewed by the effects of the COVID-19 pandemic.

It said the difference could mainly be explained by payments deferred and received under the VAT payment deferment policy, which were £42.1bn higher than last year.

As a result of the policy, VAT accounted for 17% of all cash brought in by taxes in the 2020/21 tax year, down from 21% in 2019/20.

Cash receipts were also higher between April and July 2021 for income tax, capital gains tax and National Insurance contributions by £22.7bn.

Receipts also increased for corporation tax (£3.8bn), hydrocarbon oils (£2.9bn) and stamp taxes (£2.2bn).

Contact us for help with your tax return.

Let's talk. We're here to help get you started.

Our team of accountants in Hertfordshire is ready to provide the personalised support your business needs to thrive.

Your questions answered

How can Barley Grove help my start-up grow?

We provide tailored accounting and financial advice for start-ups, including cashflow management, financial forecasting, and strategic growth advice to help you succeed from the start.

Do you offer consultations outside of regular business hours?

Yes, we offer flexible consultations, including outside of regular business hours, to accommodate your busy schedule and ensure you get the support you need.

How do I switch accountants to Barley Grove?

Switching to Barley Grove is simple. We’ll manage the process, liaise with your previous accountant, and handle the paperwork to ensure a smooth transition.

Will switching accountants affect my current accounts?

No, switching accountants won’t disrupt your business. We’ll ensure a seamless handover of financial records and take care of the details for you.

Quickbooks logo
Xero Silver partner logo

Sign-up for our newsletter

By submitting your details you agree to receive email marketing from Barley Grove and have read and understood our Privacy Notice. You can withdraw your consent or change your preferences at any time by emailing us or by clicking the link at the bottom of every email we send you.

10-14 Old Wallfields,
Peg's Lane,
Hertford,
SG13 8EQ