HMRC collected £153.7bn in tax and National Insurance contributions (NICs) between April and May 2026, up £9.8bn year-on-year, driven largely by stronger income tax and NIC receipts.

Income tax, capital gains tax and NICs generated £91.3bn over the period, an increase of £7.2bn compared with the same period last year, while PAYE income tax and NIC receipts rose £7.5bn to £92.2bn, continuing the trend seen through the previous tax year.

HMRC data showed that stamp tax receipts for the period reached £3.4bn, which is £200m higher than the same period last year.

Shaun Moore, tax and financial planning expert at Quilter, said the figures confirm the growing effect of frozen tax thresholds on households. "Fiscal drag is now a central feature of the system, steadily pulling more income into higher tax bands and increasing the overall tax take," he said.

Moore added that despite slower real wage growth, rising nominal earnings continue to increase tax receipts, limiting improvements in take-home pay. With thresholds frozen until 2031, he said more people are likely to move into higher and additional rate tax bands over the remainder of the decade.

Henshaw added that detailed guidance is still awaited from HMRC, creating uncertainty for advisers and clients preparing for changes due from April 2027. "With less than a year to go until pensions are liable for inheritance tax, many advisers are doing what they can to support clients in planning ahead. But detailed guidance is still lacking from HMRC at this point, leaving a lot of guesswork – making giving clear advice a challenge."

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