VAT receipts reach record level of £133 billion

Figures published by HM Revenue & Customs (HMRC) have revealed that VAT revenue in 2018/19 rose by £7 billion from the previous year to reach a record £133 billion.

In the ten years since 2008/09, the VAT take has risen by 52 per cent from £87.9 billion.

The bulk of the VAT take last year came from incorporated companies, which accounted for 73 per cent of traders and 93 per cent of the total annual taxable turnover.

Meanwhile, more than 62 per cent of VAT was paid by traders with an annual turnover of more than £10 million.

However, despite the substantial rise in the tax take, the tax gap – the difference between what HMRC actually receives and what it calculates that it should receive – has grown to £12.5 billion.

HMRC says that 9.1 per cent of the total VAT due is not paid, which accounts for 36 per cent of all uncollected tax in the UK.

The figures pre-date the introduction of Making Tax Digital (MTD) for VAT on 1 April 2019.

The rules governing VAT in the UK are complex and confusing, which is why you should always seek specialist advice from tax experts. For more information about how AGS can help, please contact us.

Link: VAT receipts hit record £133 billion

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