- HMRC published updated UK tax receipts data, including VAT, NICs, and expenditure.
- VAT receipts rose from £77.4bn in 2006–07 to £180.7bn in 2025–26, and as a share of GDP from 5.2% to 5.9%.
- VAT fell sharply in 2020–21 to £101.7bn due to COVID-19 impacts, payment deferrals, and a temporary reduced VAT rate for hospitality-related sectors.
- Receipts were £171.0bn in 2024–25, with only modest growth from the prior year, likely due to a lower share of spending on standard-rate goods.
- The 2025–26 increase is linked to inflation and policy measures expanding the nominal VAT base.
Source: marcusward.co
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
