On 18 August 2026 Her Majesty s Revenue and Customs HMRC published the latest national statistics on tax receipts and National Insurance NI contributions for the United Kingdom covering the fiscal year up to 5 April 2026 the data released forms part of the annual HMRC tax receipts and national insurance contributions bulletin and provides comprehensive insight into the composition and performance of the UK s domestic revenue streams against the backdrop of ongoing economic uncertainty and post pandemic recovery The statistics reveal that total tax receipts rose by 4.2 per cent year on year to approximately 1.03 trillion pounds driven primarily by increases in value added tax VAT corporation tax and inheritance tax while National Insurance contributions grew by 3.8 per cent to 165.4 billion pounds reflecting sustained employment levels and wage growth HMRC officials highlighted that the improved receipts trajectory supports the governments fiscal deficit reduction targets and aligns with the Office for Budgetary Responsibility OBR medium term projections however the data also indicates a modest increase in the tax gap attributable to under reporting in the self assessment segment and a continued reliance on higher rate income tax contributions The report further breaks down receipts by sector region and taxpayer category revealing that the south east of England and London continue to contribute the highest absolute tax volumes while northern England and Scotland demonstrate the fastest growth rates in National Insurance payments amidst regional economic rebalancing initiatives HMRC has committed to publishing supplementary analysis later in the year examining the impact of recent tax policy measures including the adjustments to the annual tax allowance and the introduction of the new dividend tax rates on investor behaviour and overall revenue composition
Key Takeaways
- Overall Revenue Growth and Sectoral Drivers Total tax receipts for the UK increased by 4.2 year on year to approximately 1.03 trillion pounds in the fiscal year to 5 April 2026 primarily driven by a 7.1 per cent rise in value added tax revenues a 6.5 per cent increase in corporation tax take and a 5.3 per cent growth in inheritance tax receipts reflecting buoyant consumer spending strong corporate profitability and an ageing population with higher estate values respectively
- National Insurance Contributions and Employment Trends National Insurance contributions rose by 3.8 per cent to 165.4 billion pounds sustained by sustained employment levels wage growth and the continued expansion of the UK workforce the statistics reveal regional disparities with northern England and Scotland recording the fastest growth rates in NI payments amidst ongoing economic rebalancing initiatives while the south east and London maintain the highest absolute contribution levels
- Tax Gap Analysis and Policy Implications The data indicates a modest increase in the tax gap within the self assessment segment underscoring the need for enhanced compliance monitoring and the recent adjustments to the annual tax allowance and new dividend tax rates may influence investor behaviour and overall revenue composition HMRC has pledged supplementary analysis later in the year to examine these impacts and inform future policy adjustments aimed at closing the gap and supporting the Office for Budgetary Responsibility OBR medium term fiscal projections
Disclaimer:This article is compiled and summarized based on publicly available information and is for general information and academic exchange purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. For tax planning, please consult a qualified professional tax advisor or legal counsel.
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