HMRC collected £938.8 billion in tax and National Insurance receipts during 2025/26, an increase of 9.3% on the previous year.
Income Tax, Capital Gains Tax and National Insurance remained the largest sources of revenue, together accounting for 59% of total receipts. The figures underline the continued importance of employment and personal taxation to Government finances.
The annual report also details HMRC’s work to reduce the tax gap through compliance investigations, debt collection and targeted enforcement. The department continued to invest in data, automation and technology to identify unpaid tax and improve the efficiency of its compliance activity.
Modernisation remained a major focus. HMRC progressed preparations for Making Tax Digital for Income Tax and continued developing digital services for taxpayers, businesses and agents. It also aimed to move more routine enquiries online and reduce reliance on telephone support.
Customer service performance remained under pressure, although HMRC reported further improvements to its digital channels. The department continued to use automation and artificial intelligence in some operational and compliance processes.
HMRC’s main priorities during the year were reducing the tax gap, improving customer experience and modernising the tax and customs system. These objectives shaped its spending plans and operational work.
Alongside tax collection, HMRC administered tax reliefs, repayments and financial support for individuals and businesses. It also managed customs processes and supported international trade.
The report covers HMRC’s financial and operational performance for the year ending 31 March 2026, including tax receipts, compliance activity, departmental spending, governance and progress against its strategic objectives.