HMRC collected a record £938.8 billion in tax and National Insurance during the 2025/26 tax year, highlighting the growing contribution of tax revenues to government finances.
The latest figures represent a 9.3% increase compared with the previous year and reflect continued growth in receipts from employment, personal taxation and business activity.
Income Tax, Capital Gains Tax and National Insurance remained the government's largest sources of revenue, together accounting for 59% of all tax collected. The figures underline the significant role that employment income and personal taxes continue to play in funding public services.
Alongside collecting tax, HMRC continued its efforts to reduce the UK's tax gap through compliance activity, debt collection and targeted enforcement. During the year, the department invested further in data analysis, automation and technology to help identify unpaid tax more efficiently and strengthen its compliance work.
Modernising the tax system also remained a key priority. HMRC continued preparing for the rollout of Making Tax Digital for Income Tax while expanding its range of digital services for taxpayers, businesses and professional agents.
As part of its wider transformation programme, the department is seeking to move more routine enquiries online, reducing reliance on telephone support and encouraging greater use of digital services.
Customer service remained under pressure throughout the year, although HMRC reported continued improvements to its online systems. The department also expanded its use of automation and artificial intelligence across certain operational and compliance activities in an effort to improve efficiency.
Beyond tax collection, HMRC continued to administer tax reliefs, repayments and financial support for individuals and businesses, while also overseeing customs processes and supporting international trade.
The annual report highlights three strategic priorities that will continue to shape HMRC's work: reducing the tax gap, improving the customer experience and modernising the UK's tax and customs system.
For taxpayers and businesses, the report provides a clear indication of HMRC's future direction. Digital services, technology-led compliance and greater use of data are expected to play an increasingly important role as the department seeks to improve efficiency while strengthening tax compliance across the UK.
