UK tax take nears £1 trillion – what it means for you

The UK’s tax burden continues to climb, with the latest figures showing HMRC collected £938.8 billion in 2025–26 – a substantial 9.3% increase on the previous year.

Over a longer period, the trend is even more striking. In just two years, tax receipts have risen by £110.2 billion (13.3%), and over the past two decades, the total tax take has more than doubled from £428.6 billion in 2006–07.

Taxes now account for 30.7% of GDP, marking a steady upward shift in the proportion of national income flowing to the Treasury.

What’s driving the increase?

• VAT receipts hit a record £180.7 billion, reflecting higher consumer spending and inflation impact
• corporation tax and related business taxes reached £101.4 billion, boosted by growth in UK-based corporate profits
• overall, rising receipts are being driven by a combination of economic growth, fiscal policy changes, and inflation pushing individuals and businesses into higher tax brackets

Why this matters

As the UK tax system becomes more complex and the overall burden increases, many individuals and businesses are finding themselves paying more tax than necessary – often without realising it.

Changes to allowances, thresholds, and reliefs mean that navigating tax efficiently now requires careful planning and up-to-date expertise.

How we can help

At HWB, we understand that tax rules are becoming increasingly complicated. Our role is to cut through that complexity and provide clear, practical advice tailored to you.

We work closely with our clients to:

• identify tax-saving opportunities
• ensure compliance while maximising efficiency
• support long-term financial planning for individuals, families, and businesses

In a world of rising taxes, taking proactive advice has never been more important.

If you’d like to ensure you’re not paying more tax than you need to, please do get in touch with Steven Martin using the details below.