Despite two National Insurance (NI) cuts this year, income tax revenue is up. PAYE income tax and NI contributions (NICs) rose by £2.5 billion in the first three months of the tax year. From April to June 2024, these taxes brought in £195.1bn, £4.7bn more than the same period in 2023.
A 25% corporation tax hike boosted business tax receipts by £1.7bn to £20.5bn. This, and a £1bn rise in income tax, offset the drop in NICs following the 4% cut initiated by former Chancellor, Jeremy Hunt, before the general election.
Inheritance tax (IHT) continues to rise, albeit more slowly than in June 2023. Between April and June 2024, IHT was £2.1bn, £83m more than the same period in 2023. Income tax receipts from April to June 2024 increased by over £4bn due to static tax thresholds, pulling more people into higher rates. PAYE income tax for June 2024 was £19.2bn, £800m higher than June 2023.
NICs decreased from 12% to 8%, resulting in a total take of £41.9bn from April to June, down from £44bn in 2023. However, combined PAYE income tax and NICs still saw a £2.5bn increase compared to last year. Stamp duty land tax (SDLT) also rose, with over £1bn collected in June, although still below the highs of 2021 and 2022.
Capital gains tax (CGT) saw its first decline in five years, dropping to £15bn, nearly £2bn less than the 2022/23 tax year.
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