Bank and apprenticeship levy raise £37bn since 2010
8 Jul 2019
HMRC has collected an additional £37bn from new taxes introduced over the past decade, according to research from UHY Hacker Young
8 Jul 2019
Charges on the banking sector, untaxed overseas investment activity and unhealthy lifestyle choices are swelling the Treasury’s coffers, the firm found.
Up to year-end 31 May, eight new taxes and levies have been brought in since the coalition government came into office in 2010. The firm calculates these raised £7.6bn in 2018/19, up from £7.4bn the previous year.
The newest tax, the soft drinks levy, has cost industry more than £300m in the year since it was introduced in April 2018.
According to UHY Hacker Young’s analysis, the highest yielding new tax was the bank levy, generating £20.4bn since its introduction in 2011.
Second place goes to the apprenticeship levy, generating £5.5bn since its debut in 2017, while in third place is the bank surcharge, which has pulled in £5.3bn since 2016.
The bank payroll tax has brought in £3.4bn, followed by the Swiss capital tax (957m), annual tax on enveloped dwellings (£954m), diverted profits tax (£369m) and the soft drinks industry levy (£318m).
UHY Hacker Young warns that the significant success of these new taxes could encourage the government to introduce more taxes. There is mounting pressure to introduce a ‘sin tax’ on vaping products, while the World Health Organization is also encouraging the introduction of a ‘trans-fat’ tax that could result in an industry-wide levy on businesses that produce foods high in harmful fats.
Clive Gawthorpe, partner at UHY Hacker Young, said: ‘Adding new taxes and placing a heavier burden on businesses does not seem to fit in with the government’s aims to simplify tax.
‘These new taxes have already brought in billions of pounds in a relatively short space of time. Each new tax adds more and more of a burden on businesses. Given the economic uncertainty perhaps the government should be holding off on plans for new taxes.’