HMRC

HMRC taxes collected falls 7.6% to £585bn in FY21

The announcement came as a part of the body’s provisional performance results for the financial year 2020/21

HMRC has revealed that it collected £585bn in tax during FY21, a year-on-year fall of 7.6% from the £633.4bn raised in FY20.

The announcement came as a part of the body’s provisional performance results for the financial year 2020/21.

Debt held by HMRC at the end of the year was £57.5bn, £35bn higher than at the end of FY20 but £8bn less than Q3 FY21’s figure.

More than half of the body’s debt was made up of deferred VAT debt, which was due on either 31 March 2021 or at the end of June 2021, and self assessment payment on account, due on 31 January 2021.

Elsewhere, HMRC enabled 1.3 million employers to claim £58bn for over 11.4 million furloughed jobs via the Coronavirus job retention scheme.

Some £24.5bn was also provided to the self-employed, with nearly 8.8 million claims made through the self-employment income support scheme.

Looking ahead, the body said: “Our approach to increasing compliance activity will continue to be informed by customers’ individual circumstances, particularly if they are still severely affected by the effects of the pandemic.

“We will also carry on supporting businesses adjust to the changes to trading rules following UK transition, so they can continue to compete successfully on the global stage.”

It added: “Our message to customers is simple: if you can pay your taxes then you should do so – but if you’re struggling, we want to work with you to agree a plan based on your financial position.”

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