Tax revenues highest on record

Total tax revenues for 2023-24 were £843.4bn the highest on record and a 3.6% increase on 2022-23 states HMRC in its annual report for 2023-24. The increase reflects the freezing of income tax bands and thresholds and an increase in the rate of corporation tax.

The cost of running HMRC in 2023-24 was £7.2bn.

Tax debt has fallen marginally in absolute terms and as a proportion of revenue. It was £43bn on 31 March 2024 £0.9bn less than at 31 March 2023. However it remains significantly higher than pre-pandemic levels.

HMRC’s estimate of the amount it may not be able to collect from taxpayers has continued to rise. At March 2024 it estimates it will not be able to collect 45.4% (£27.6bn) of taxes due but not yet paid up from 32% (£19.2bn) a year earlier.

The amount of debt written off...