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

Government consults on 'mansion tax' proposals

Government consults on 'mansion tax' proposals

Deferral scheme and exemptions outlined

Sophia Panayi
clock 19 May 2026 • 3 min read
Costly procrastination: Why inheritance tax is becoming a wider UK problem

Costly procrastination: Why inheritance tax is becoming a wider UK problem

'There is a clear disconnect between awareness and follow‑through'

Hugi Clarke
clock 14 May 2026 • 4 min read
Most millionaires would pay higher taxes to support young people – research

Most millionaires would pay higher taxes to support young people – research

79% willing to pay higher taxes

Sophia Panayi
clock 13 May 2026 • 3 min read