Tax receipts fall as pandemic bites

Tax receipts have been adversely affected by the Covid-19 pandemic with lower receipts collected across several taxes according to recent statistics from HMRC.

Figures of tax collected for April to October 2020 are £70.6bn lower than in the same period in 2019 mainly due to VAT (£38.7bn) income tax and National Insurance (£11bn) corporation tax (£11.9bn) stamp taxes (£2.7bn) and air passenger duty (£2bn).

George Bull tax consultant at RSM said: ‘The amount by which taxes have dropped since 2019 is shocking with a £10bn deficit in income tax and National Insurance contributions alone. The VAT reduction is even worse pushing towards £40bn though deferrals will be a part of this.

‘The figures will be particularly unwelcome to chancellor of the exchequer Rishi Sunak as they further limit his scope for action as he prepares to deliver his economic forecast on...