Rishi Sunak cashes in on stealth tax raids as Treasury sits on record fortune

Taxes such as National Insurance, income tax, capital gains and inheritance taxes have all hit new highs in 2021-22

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The Treasury has raked in record-breaking levels of tax, a year after the Chancellor froze the thresholds during a stealth raid.

Taxes such as National Insurance, income tax, capital gains and inheritance taxes have all hit new highs in 2021-22.

HM Revenue & Customs has reported a collection of £718.2billion in taxes in the last tax year, a rise on the preceding year by almost a quarter, provisional Government figures suggest.

Tax receipts as a proportion of GDP have climbed to 30 percent, a rise from 27 percent in the year before.

The rise is emblematic of a trend that has been seen every year since the Conservatives took to power in 2010, as each year has seen a rise in the HMRC's tax haul.

The Chancellor has faced increasing criticism as families face a cost of living crisis in the UK.
The Chancellor has faced increasing criticism as families face a cost of living crisis in the UK.

Rishi Sunak is likely to come under further pressure to cut taxes as families face an increasing cost of living crisis, according to experts.

The Chancellor has made it clear that he prefers low taxation, but he has overseen Britain being set on course to have the highest tax burden since the second world war aftermath.

An increase in corporation tax to 25 percent from 19 percent and a 1.25 percent increase in National Insurance and dividend tax rates has been overseen by Mr Sunak in the past two years, resulting in the HMRC receiving an increasingly expanding tax haul.

Rishi Sunak has attributed the coronavirus pandemic as a reason for the increase in taxation.
Rishi Sunak has attributed the coronavirus pandemic as a reason for the increase in taxation.
The Chancellor of the Exchequer outlined his Spring Statement to Parliament in March.
The Chancellor of the Exchequer outlined his Spring Statement to Parliament in March.

The Chancellor says he made the decisions "in support of public finances" and to mitigate the affects of the coronavirus pandemic, where vast sums of public money were spent.

Danielle Boxhall, of the lobby group Taxpayers’ Alliance, told the Daily Telegraph: "With inflation rising, the Chancellor's tax break freeze is effectively a stealth tax on unsuspecting taxpayers already facing the highest tax burden in 70 years.

"The Treasury should link thresholds with inflation or wage growth to avoid fiscal drag, and give taxpayers and businesses some much-needed respite."

The annual income tax intake broke the £200 billion mark for the first time in 2021-22 to reach £224billion, a 15 percent rise on the prior tax year.

Figures show the increase is mainly due to the strength of employee earnings.

The HMRC also reported a £157billion National Insurance intake, up almost 10 percent on the previous year, even before higher rates kicked in during April.

VAT also saw a significant rise of 30 percent and a record figure of £132.5billion.

Stamp duty land taxes also reached a new high of £14billion, aided by the pandemic property boom.