Self-assessment receipts are down by approximately £822m for January and December in comparison to the same time last year, say London chartered accountants Blick Rothenberg following the release of HMRC’s monthly tax statistics.
Susan Spash, a partner at the firm says this is not wholly unexpected as we settle back into the top rate of income tax at 45 percent: “This is probably due to those taxpayers paying tax at the highest rate tax delaying income receipts until the additional rate of tax was lowered from 50 percent to 45 percent from 6th April 2013. This is much the same as what happened in the tax year before the 50 percent rate of tax kicked in, when many taxpayers were able to bring forward income receipts.
“Whilst self-assessment receipts are down, reflecting the turbulent 2012/13 tax year (as January is the payment date for the balance of tax from that tax year), PAYE receipts for the 12 months to January 2014 are up by approximately £1.8 billion compared to the 12 months to January 2013. This is a more current picture of the economy and reflects a fall in unemployment and signs of getting back on track.”