Self-employment tax receipts on the rise despite drop in numbers

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Although it’s been disappointing to read about the sharp decline in the number of people choosing to go self-employed, latest figures from the Office for National Statistics (ONS) still prove that interim workers are integral to the success of the UK economy.

Last month, HMRC raked in £7.8 billion in self-assessment income tax receipts, up from £6.7 billion the previous year. In total, the Revenue received £19.8 billion in income tax in July 2015, compared to £18.5 billion in 2014.

Meanwhile, the statistics revealed that the taxman’s coffers swelled by £163 billion from income tax receipts alone, helping it reach an overall tax take of £515 billion in 2014-15. Of this, £23 billion came from self-assessment – up from £20 billion the previous year.

Corporation tax was another moneyspinner for the Treasury, helping HMRC collect £6.9 billion last month alone. This is up from £6.5 billion the previous year. In total, the Revenue received over £43 billion from the levy in 2014-15, compared to £40 billion in 2013-14.

The figures show that despite increased pressure in the forms of intense scrutiny and legislative changes, self-employed professionals continue to be the unsung heroes of the UK labour market. Indeed, this increase in tax take adds further fuel to the argument that the government should offer more support to those who choose to work for themselves.

These tax figures come just weeks after the ONS’ wage growth report found that permanent employees are experiencing a drop in wages, with salaries falling by 2.4% in the three months to June. In contrast, contractors and the self-employed are marching on, with some professionals now earning 27% more than they were last year.

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