HMRC has collected an extra £23 billion in taxes from April 2024 to January 2025, with self assessment receipts surging by 19% – a staggering £10bn more than pre-pandemic levels.
Total income tax revenues, including PAYE, were £7bn higher in January 2025 compared to the previous year. Self assessment alone brought in £25.88bn, up from £21.7bn in 2024 and £21.9bn in 2023. This marks a significant increase after two years of relatively flat figures.
Despite this growth, the figure fell short of the Office for Budget Responsibility’s (OBR) forecast of £28.9bn. However, late filers may still bridge the gap. Around 700,000 taxpayers missed the filing deadline, but their payments could add billions in the coming months.
The rise in PAYE receipts reflects frozen tax thresholds, which have pulled more people into higher tax bands, national insurance cuts by the previous government, and strong wage growth. PAYE payments rose from £18.2bn in January 2023 to £23.3bn in 2025 – a £5bn jump in just two years.
Meanwhile, inheritance tax is on track for another record-breaking year, with receipts already £700m higher than in 2023/24. Over the last 10 months, £6.9bn has been collected, up from £6.2bn in January 2024.
Talk to us about your tax return.
