Average household has paid £368 more in personal taxes so far this year
23 August 2023
HMRC has published the latest monthly tax receipt statistics for the year to date and the results show households are paying more in personal taxes on average than ever before.
When referring to personal taxes, we are referring to income tax, National Insurance contributions (NICs), capital gains tax (CGT) and inheritance tax (IHT). Whilst individuals will also pay tax in different ways, such as VAT and property stamp taxes, it is not possible to determine from the statistics how much is paid individually and how much is paid by businesses.
The total amount paid in personal taxes to the Treasury from April 2023 to July 2023 is around £155bn. That is a record amount and over £10bn more than the same period last year, representing around a 7% increase.
It follows a number of years of significant growth in personal tax receipts. In the period from April 2018 to July 2018, the total personal taxes paid were around £112bn. So, in just the last five years we have seen personal tax receipts grow by around 38%. To put that in context, in the ten years prior to 2018, personal tax receipts grew by 29% from £87bn.
If we look at these tax increases in the context of UK households, the average household has paid £368 more in the period from April 2023 to July 2023 than the same period last year.
On average, households are paying 57% more in personal taxes in the four-month period so far this financial year than they were for the same period a decade ago. This year that equates to an amount of £5,486 per household compared to £3,504 a decade earlier.
With average wages still increasing, the rising personal tax burden shows no signs of slowing down as more families are impacted by fiscal drag and higher tax rates.
When referring to personal taxes, we are referring to income tax, National Insurance contributions (NICs), capital gains tax (CGT) and inheritance tax (IHT). Whilst individuals will also pay tax in different ways, such as VAT and property stamp taxes, it is not possible to determine from the statistics how much is paid individually and how much is paid by businesses.
The total amount paid in personal taxes to the Treasury from April 2023 to July 2023 is around £155bn. That is a record amount and over £10bn more than the same period last year, representing around a 7% increase.
It follows a number of years of significant growth in personal tax receipts. In the period from April 2018 to July 2018, the total personal taxes paid were around £112bn. So, in just the last five years we have seen personal tax receipts grow by around 38%. To put that in context, in the ten years prior to 2018, personal tax receipts grew by 29% from £87bn.
If we look at these tax increases in the context of UK households, the average household has paid £368 more in the period from April 2023 to July 2023 than the same period last year.
On average, households are paying 57% more in personal taxes in the four-month period so far this financial year than they were for the same period a decade ago. This year that equates to an amount of £5,486 per household compared to £3,504 a decade earlier.
With average wages still increasing, the rising personal tax burden shows no signs of slowing down as more families are impacted by fiscal drag and higher tax rates.
