April was a solid month for the Exchequer, with the main tax heads performing well.
Income tax figures continue to perform strongly, up 7.1% year to date. While unemployment has crept up, numbers in employment remain strong and continue to push income tax receipts ahead.
While April is a non VAT month for the Exchequer, growth of 6.3% year to date provides further evidence of a resilient domestic economy. With at least one round of interest rate cuts expected before year, greater disposable income should see VAT receipts remain strong for 2024.
April is typically a quiet month for corporation tax receipts. Figures for March were disappointing, meaning the May and June figures will be critical. With a small cohort of companies paying such a large portion of corporation tax receipts, further significant peaks or troughs can be expected before year end.
Overall, a good month for the Exchequer but May and June returns will be more telling.
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