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 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.

A breakdown of UK public sector income by latest month, financial year-to-date and full financial year, with comparisons with the same period in the previous financial year.

In 2024/25 VAT tax receipts in the United Kingdom amounted to just over 170 billion British pounds, compared with 168 billion in the previous financial year. Along with income tax and National Insurance contributions, VAT is one of the three-largest taxation sources for the UK government. Unlike income tax and national insurance, VAT is an indirect tax, and is raised via a 20 percent levy applied on most goods and services sold in the UK. Tax revenue during the pandemic VAT tax revenue took quite a significant hit during the COVID-19 pandemic, with receipts falling from just under 130 billion pounds in 2019/20 to around 102 billion in 2020/21. The lockdowns enforced by the UK government clearly had an effect on consumer spending, but also impacted taxes associated with travel. Revenue from air passenger duties also fell, from 3.6 billion pounds to just 590 million, elsewhere fuel duties fell from 27.6 billion to 20.9 billion. How UK taxes are spent For the 2025/26 financial year, the UK government is expected to spend 379 billion pounds on social protection, which includes spending on housing benefits and pensions. After social protection, health had the next largest budget, at 277 billion pounds, followed by education at 146 billion. As of this year, the government was paying 116 billion pounds on debt interest, while defence spending was 83 billion pounds.

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

In 2024/25, income tax accounted for 10.5 percent of gross domestic product in the United Kingdom, the largest tax as a share of GDP in this financial year. Throughout this time period, income tax has accounted for the highest share of GDP among UK taxes, followed by VAT and National Insurance Tax being the second-largest tax, depending on the relevant year. What does the government spend this on? For the 2025/26 fiscal year, the UK government expects to spend around 379 billion British pounds on social protection, which includes spending on pensions and welfare. The budget for health spending is 277 billion pounds, followed by 146 billion pounds on education. Since the 1980s, the share of GDP the UK spends on health has increased substantially, growing from four percent in 1984/85, to seven percent before the COVID-19 pandemic. By contrast, spending on defence fell from 4.6 percent of GDP to just 1.8 percent in the same time period. Debt approaching 100 percent of GPD The fourth-largest spending category in the latest UK government budget was that of debt interest, at a substantial 126 billion pounds. After taking a significant economic hit during the COVID-19 pandemic, the UK's government debt increased from around 80 percent of GDP, to almost 97 percent in one fiscal year. Although that debt is not expected to increase further in the coming years, the costs of financing that debt has put immense pressure on government finances, especially with rising borrowing costs.

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.

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.

This is a National Statistics publication produced by HM Revenue and Customs (HMRC) 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.

In 2024/25 the government of the United Kingdom's revenue was the equivalent of approximately 39.9 percent of GDP, compared with 39.3 percent in the previous financial year.

In 2024/25 corporation tax receipts in the United Kingdom amounted to approximately 91.6 billion British pounds, compared with 80.3 billion in the previous year.

Provides monthly and quarterly 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

PAYE and corporation tax receipts from the banking sector Pay-As-You-Earn (income tax and national insurance contributions). Previously listed under 'PAYE and corporation tax receipts from the banking sector'.

Source agency: HM Revenue and Customs

Designation: Official Statistics not designated as National Statistics

Language: English

Alternative title: PAYE and Corporate Tax Receipts from the Banking Sector

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.