Tax statistics: an overview

In 2023/24, UK government raised around £1,099 billion (£1.1 trillion) in receipts – income from taxes and other sources. This is equivalent to around 40% of the size of the UK economy, as measured by GDP. Receipts were last consistently around 40% of GDP in the early-1980s. Most receipts come from three main sources: income tax, National Insurance contributions (NICs) and value added tax (VAT). Together they raised around £625 billion in 2023/24.

source: ONS. Public sector current receipts: Appendix D (accessed on 28 February 2025)

Recent trends

Between 2007/08 and 2009/10 receipts fell by over 1% of GDP, following the financial crisis and recession of 2008 and 2009. Receipts have since increased and have exceeded 36.7% of GDP in each year from 2010/11. Receipts were last consistently above this level in the mid-1980s. They are forecast to rise further in the coming years.

Receipts from income tax, NICs, VAT and corporation tax are larger now, relative to the size of the economy than they were in 1999/00.

source: ONS. Public sector current receipts: Appendix D and ONS series BKTL (accessed on 28 February 2025)

Since the late 1990s receipts from stamp duty on property transactions, capital gains tax and council tax have all grown noticeably faster than the economy. Fuel duties and tobacco duties have declined.

Coronavirus: impact on receipts

Receipts were particularly affected by the coronavirus pandemic in 2020/21. In aggregate, receipts fell as there was less economic activity and because the government gave tax breaks to support the economy. However, the economy shrank to a greater extent than receipts, so receipts became larger relative to the size of the economy in 2020/21.

The financial support that the government provided to protect household incomes – such as the furlough scheme – and support businesses – such as grants – also supported some tax revenues.

While individual taxes were affected in different ways by the pandemic in 2021/22, total receipts increased and were larger than forecast pre-pandemic.

Taxes paid across the income distribution

Income tax: individual taxpayers

Income tax payments are concentrated among those individual taxpayers with the largest incomes. The 10% of income taxpayers with the largest incomes contribute over 60% of income tax receipts.

source: HMRC. Table 2.4 Shares of total Income Tax Liability

Households: all taxes

Overall, direct taxes (which include income tax, NICs and council tax) lower income inequality. Higher income individuals pay a greater share of their gross household income in direct taxes compared with poorer individuals. Council tax limits the extent to which direct taxes reduce income inequality.

Source: ONS. Effects of taxes and benefits on UK household income: financial year ending 2023

A greater share of the income of lower income households goes on indirect taxes (VAT, duties and so forth). However, some economists argue that indirect taxes should be considered relative to households’ spending, rather than their income, not least because indirect taxes are generally levied on spending. When looked at relative to households’ spending, indirect taxes are broadly similar across the income distribution.

Source: ONS. Effects of taxes and benefits on UK household income: financial year ending 2023

 Source: ONS. Effects of taxes and benefits on UK household income: financial year ending 2023