HMRC’s 2025 January Tax Harvest Hits New Record
Picture a massive cash drop into the Treasury coffers—pretty close to a £112bn haul. That’s almost £3.9bn above the shiny title of the previous January 2023 record, according to the audit, tax, and business advisory buzz team at Blick Rothenberg.
Income Tax Takes the Spotlight
- Income tax alone surged by £6.8bn, landing just under the £50bn mark for a single month. Break out the confetti—another record!
- Tom Goddard, a Senior Associate, explained that the January 31st deadline for self‑assessment tax returns sparked a tax‑taking frenzy, nudging HMRC’s total to £25.8bn from those returns alone.
Double the Jump from Last Year
The total income tax intake for January 2025 is just shy of £50bn, which is a staggering £6.9bn more than the previous year’s January. That’s more than twice the growth rate of 2024—truly a headline‑making spike.
Why This Matters for the Treasury
With the Office for Budget Responsibility possibly issuing less rosy forecasts in March, HMRC’s robust tax takings give the Treasury a boost of optimism. The Chancellor will likely factor this upward trend into her first Spring Statement, considering clever ways to keep the economy humming.
Capital Gains Tax (CGT) Updates
January is also the final day to pay any CGT owed on assets beyond UK property for the prior tax year. In 2024, CGT collection saw a £339m dip compared to last year, and the overall CGT tally for the tax year dropped by £27m. This could hint at investors becoming more cautious.
Post the Chancellor’s 2024 Autumn budget, CGT rates are slated for an increase from October 2024. Whether this translates into higher HMRC takings—or if cautious investors hold back—remains to be seen.
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