VAT revenues rise to highest amount ever as HMRC pockets £157bn in just one year

HMRC collected a record £ 157.2 billion from VAT bills in the last tax year, an increase of 55 per cent compared to the £ 101 billion collected in 2020/21, after companies were forced to recover VAT payments they had postponed during the pandemic.

Auditors have said that HMRC’s VAT revenue has increased sharply after the VAT rate paid by the hospitality sector increased to 20 percent on 31 March last year.

The price was temporarily reduced to 5 percent during the pandemic to ease the burden on pubs, restaurants and hotels that were forced to close during the lockdown.

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