In 2024/25, income tax receipts in the United Kingdom amounted to 301 billion British pounds, compared with 275 billion in the previous year. Although the value of income tax receipts has grown quite consistently throughout this period, there is a sharp increase observable from 2021/22 onwards. The period of high inflation from 2021 onwards led to faster wage growth, which pushed many UK workers into higher tax bands, resulting in the increased income tax revenue. Income tax brackets The amount which workers in the United Kingdom pay in income tax is determined by how much they earn, placing them in different income tax bands. All workers in the United Kingdom are entitled to earn a personal allowance of 12,750 pounds before they are charged income tax. The Basic rate of 20 percent applies to income between 12,750 and 50,270 pounds, with a higher rate of 40 percent charged on incomes between 50,271 and 125,140 pounds. The highest tax band stands at 45 percent, for earnings over 125,140 pounds. Main UK taxes Income tax is the largest source of UK government revenue, accounting for 11 percent of gross domestic product in 2025/26. Value Added Tax was the next largest source of UK government revenue, followed by National Insurance, and Corporation Tax. Value Added Tax or VAT is the largest indirect tax in the UK, and is raised via a 20 percent levy on most goods and services sold in the UK. National Insurance Contributions form an additional direct tax on earnings in the UK, while Corporation Tax taxes the profits of companies resident in the UK.

In 2024/25 the value of tax receipts for the United Kingdom amounted to approximately 840 billion British pounds. Tax receipts form the bulk of UK government income, based on various direct and indirect taxes. Although tax income has gradually increased throughout most of this period, there is a noticeable dip in 2020 due to the COVID-19 pandemic. Tax revenue sources Of the revenue generated by taxation in 2024/25, over 301 billion of this came from Income Tax receipts, which was the main source of direct tax income for the government. After income tax, the next most substantial direct tax were contributions from National Insurance, which amounted to just over 172.5 billion pounds of tax revenue. The UK's main goods and services tax; Value-added Tax (VAT) amounted to 170.6 billion pounds, while Corporation Tax receipts raised 91.6 billion pounds. Although other smaller direct and indirect taxes produce notable income, these four sources were by far the main sources of income in the previous financial year. UK government finances While taxes and other sources of income raised more than 1.13 trillion pounds in 2024/25, the UK government expenditure was around 1.28 trillion pounds. This gap between revenue and expenditure was financed via government borrowing, which amounted to almost 152 billion pounds. As the UK government has been spending more than it earns for several years, this has resulted in a significant government debt of 2.8 trillion pounds building up, the equivalent of just under 96 percent of GDP in 2024/25.

In 2025/26, the government of the United Kingdom is expected to receive 1.2 trillion British pounds of public sector current receipts, with 329 billion British pounds coming from income tax, as well as 214 billion pounds from VAT. Other substantial sources of income include Corporation Tax, predicted to raise 105 billion pounds, and Council Tax, which will raise around 50 billion pounds. Government revenue falls short of spending Overall government revenue in 2023/24 amounted to approximately 1.13 trillion pounds, but with the government spending around 1.28 trillion pounds, the UK borrowed almost 152 billion pounds to cover its costs. As a consequence, the UK's national debt increased from 2.69 trillion pounds in 2022/23, to 2.81 trillion pounds in 2023/24, almost 100 per cent of GDP. Financing this debt is becoming increasingly burdensome for UK government finances, with the UK spending more on debt interest than on defence, transport, and public order and safety. Impact of COVID-19 on revenue sources Income received from some of the UK's typical revenue sources were severely depleted at the height of the COVID-19 pandemic. In 2018/19, for example, VAT raised around 132.5 billion pounds, with receipts falling to 129.9 billion pounds in 2019/20, and just 101.7 billion pounds in 2020/21. Corporation Tax, fell from 61.6 billion pounds in 2019/20, to 50.5 billion pounds in 2020/21, while revenue from Air Passenger Duties declined from 3.64 billion pounds in 2019/20, to just 590 million pounds in 2020/21, and just over one billion pounds in 2021/22.

In 2025/26, the value of income tax receipts in the United Kingdom is expected to reach over 330 billion British pounds, rising to 356 billion pounds in 2026/27, and 378.5 billion pounds in 2027/28.

In 2024/25 the government of the United Kingdom's income was estimated to equate to approximately 39.4 percent of GDP, compared with 40 percent in the previous financial year.

Public sector revenue for each country and region of the UK.

Key information about United Kingdom Tax Revenue

• UK Tax Revenue was reported at 293.401 USD bn in Sep 2025.
• This records an increase from the previous figure of 264.309 USD bn for Jun 2025.
• UK Tax Revenue data is updated quarterly, averaging 68.408 USD bn from Mar 1957 to Sep 2025, with 275 observations.
• The data reached an all-time high of 311.268 USD bn in Mar 2025 and a record low of 3.111 USD bn in Jun 1957.
• UK Tax Revenue data remains active status in CEIC and is reported by CEIC Data.
• The data is categorized under World Trend Plus’s Global Economic Monitor – Table: Tax Revenue: USD: Quarterly.

CEIC calculates quarterly Tax Revenue as the sum of Taxes on Income and Wealth, Taxes on Production, Other Current Taxes and Taxes on Capital and converts it into USD. Office for National Statistics provides Tax Revenue in local currency. Federal Reserve Board average market exchange rate is used for currency conversions.

Tax Revenue in the United Kingdom increased to 63640 GBP Million in October from 63415 GBP Million in September of 2025. This dataset includes a chart with historical data for the United Kingdom Tax Revenue.

This publication contains income tax receipts broken down according to the way in which tax is collected (through Pay As You Earn, Self Assessment etc), income tax repayments and tax credit figures on an annual basis. Previously listed under 'Revenue-based Taxes and Benefits: Income tax statistics and distributions'. Source agency: HM Revenue and Customs Designation: National Statistics Language: English Alternative title: Income Tax Receipts

In the United Kingdom, tax revenue as a share of GDP, sometimes called the national tax burden was 35.3 percent in 2024/25, up from just 28.4 percent in 1993/94.

Key information about UK Tax revenue: % of GDP

• United Kingdom Tax revenue: % of GDP was reported at 28.6 % in Sep 2025.
• This records an increase from the previous number of 26.4 % for Jun 2025.
• UK Tax revenue: % of GDP data is updated quarterly, averaging 23.6 % from Mar 1955 to Sep 2025, with 283 observations.
• The data reached an all-time high of 44.2 % in Mar 1955 and a record low of 19.9 % in Jun 1960.
• UK Tax revenue: % of GDP data remains active status in CEIC and is reported by CEIC Data.
• The data is categorized under World Trend Plus’s Global Economic Monitor – Table: Tax Revenue: % of Nominal GDP: Quarterly.

CEIC calculates quarterly Tax Revenue as % of Nominal GDP from quarterly Tax Revenue and quarterly Nominal GDP. Tax Revenue is calculated as the sum of Taxes on Income and Wealth, Taxes on Production, Other Current Taxes and Taxes on Capital. Office for National Statistics provides Tax Revenue in local currency and Nominal GDP in local currency.

Actual value and historical data chart for United Kingdom Tax Revenue Percent Of GDP

This is a National Statistics publication produced by HM Revenue and Customs using receipts information from HMRC’s administrative systems. For more information on National Statistics and governance of statistics produced by public bodies please see the UK Statistics Authority website.

Income from HM Revenue and Customs

This one of a series of taxation packages on CKAN. This package contains general information on all HM Revenue & Customs taxes, including tax receipts and credits, benefits, number of taxpayers and estimates of the cost of tax expenditures and structural reliefs.

The income from HM Revenue and Customs is described briefly in the Departmental Report 2009:

http://www.hmrc.gov.uk/about/dept-ann-rep09.pdf

Revenue collected* 2008-09 (£bn)

1. Income Tax 149.6
2. National Insurance contributions 98.0
3. VAT 78.5
4. Corporation Tax 41.8
5. Hydrocarbon Oils 24.7
6. Alcohols 8.5
7. CGT 8.2
8. Tobacco 7.9
9. Stamp taxes 7.6
10. Other taxes and duties 10.9

The Other taxes and duties figures above, include Tax Credits treated as Negative Taxation and Student Loan Recoveries.

Entitlements paid 2008-09 (£bn)

1. Tax Credits 23.7
2. Child Benefit 11.2
3. Child Trust Fund endowments 0.19

Income Tax

Individuals may receive many different types of income but not all kinds of income are taxable.

The main kinds of income on which income tax may be payable are income from employment, self-employed profits from a business, occupational and personal pensions, interest from building societies and banks, dividends on shares, and income from property.

Tax is payable on some social security benefits such as the state retirement pension, bereavement allowance, jobseeker's allowance and incapacity benefit - but not on others such as tax credits or pension credit, or child benefit.

Tax is not payable on income received from certain National Savings products such as National Savings certificates, or from Individual Savings Accounts.

This is quoted from : http://www.hmrc.gov.uk/stats/income_tax/income-tax-intro.pdf

and this is another useful source:

http://www.hmrc.gov.uk/stats/income_tax/menu.htm

The most up to date list of taxes the Revenue and Customs receive is:

Direct taxes - paid by you or your business on money you earn or capital you gain.

1. Capital Gains Tax.
2. Corporation Tax.
3. Income Tax.
4. Inheritance Tax.
5. National Insurance Contributions.

Indirect taxes - paid by you or your business on money spent on goods or services.

1. Excise duties.
2. Insurance Premium Tax.
3. Petroleum Revenue Tax.
4. Stamp Duty.
5. Stamp Duty Land Tax.
6. Stamp Duty Reserve Tax.
7. VAT.

They pay and administer:

1. Child Benefit
2. Child Trust Fund
3. Tax Credits.

from http://www.hmrc.gov.uk/menus/aboutmenu.htm

Government Revenue Data We Would Like

A complete breakdown of government income broken down by:

• type of tax
• how these tax amounts have changed over time
• how taxes have changed over time
• demographics of the population the money is from, like: age, gender, geographical location and nationality.
• how the demographics of taxed population have changed over time

Is there a functional classification for taxes similar to COFOG for government spending?

I would also like to know how HM Revenue and Customs store the data on the income they receive.

• What type of databases?
• What system of organising the information?

Provides general information on all HMRC taxes, including tax receipts, the number of taxpayers, personal tax credits, child benefit and estimates of the cost of tax expenditures and structural relief.

Source agency: HM Revenue and Customs

Designation: National Statistics

Language: English

Alternative title: Revenue Based Taxes

Information on the industry distribution of PAYE (Pay As You Earn) tax deducted from pay by tax year. Previously listed under 'Revenue-based Taxes and Benefits: Income tax statistics and distributions'. Source agency: HM Revenue and Customs Designation: National Statistics Language: English Alternative title: Income Tax Deducted from Pay Statistics