Self-employed income tax receipts jump 11% to £17.1bn in July

Self-employed income tax receipts reached £17.1bn in July, up almost 11% compared with the same month last year, according to the latest HMRC figures.

The amount collected during the month has more than doubled since July 2021, shortly after income tax thresholds were frozen.

July typically sees a spike in receipts from self-employed workers because it marks the deadline for the second payment on account for those who pay their tax through self assessment.

Overall income tax receipts reached £40.9bn during July, up 8% from a year earlier and £18.2bn, or 80%, higher than in July 2021.

Sarah Coles, head of personal finance at AJ Bell, said: “Self-employed people will be licking their financial wounds after meeting the business end of the usual July spike in income tax.

“It’s particularly painful, because the tax they paid through self assessment in July has more than doubled since the income tax thresholds were frozen in 2021.

“The month sees the deadline for payments on account, when many people will have to pay half the year’s tax bill.

“Self-employed people have not been immune to the damaging impact of the frozen income tax thresholds, because when profits rise with inflation, it pushes them into paying higher tax bills. It’s a significant reason why their July bills were up 11% in a year and have more than doubled since the thresholds were frozen in 2021.