VAT now comprises a fifth of HMRC's tax intake

VAT receipts up 60% in 10 years

Tom Ellis
clock • 1 min read

VAT receipts made up 21% of HMRC's total tax income in 2017/18, according to accountancy group UHY Hacker Young - up from 18% in 2008/09.

The total amount of VAT collected has rocketed up 60% over the last 10 years - up to £125bn in 2017/18, from £78bn in 2008/09. The accountancy group said the statistics highlighted how the UK tax burden was being increasingly shifted onto consumers, disproportionately affecting those with lower incomes. HMRC's total tax take increased to £594bn last year and now stands at a 30-year high. It represents 33% of GDP and ranks the UK 20 out of 36 OECD countries for highest tax burden. France tops the table at 46%. "VAT has become a crucial component of total tax take and the government wil...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax planning

Succession planning: Surrogacy and the tax challenges of having a US citizen child

Succession planning: Surrogacy and the tax challenges of having a US citizen child

'Coordinated advice is often required to ensure that family objectives can be met'

Kelly Ricketts
clock 18 September 2026 • 3 min read
Average lifetime giving nears £5k a year as retirees act to avoid IHT

Average lifetime giving nears £5k a year as retirees act to avoid IHT

The average retiree spends £27,159 a year, £5,000 more than last year

Laura Miller
clock 17 September 2026 • 3 min read
P1 platform to offer Business Relief ahead of pension IHT changes

P1 platform to offer Business Relief ahead of pension IHT changes

Partnership with PXN Investments

Sophia Panayi
clock 15 September 2026 • 3 min read