Exchequer returns April 2025 – Peter Vale commentary

April is generally a quiet month for the Exchequer but there was generally good news in the latest tax returns for the month.

Encouragingly, after a slightly disappointing March, income tax receipts recovered in April, up 7.5% on the same month last year.

Income tax receipts are generally higher in April due to one off employee remuneration payments in the period, such as bonuses.

The solid April income tax figures indicates little pressure thus far on employee remuneration, particularly at more senior levels, although it’s worth noting that many bonuses paid in the period would have been determined prior to the global trade downturn.

April is a quiet month for VAT, with returns for the year to date running at 6% ahead of 2024 equivalent, reflecting strong consumer spending despite the global economic turmoil.

Corporation tax receipts year to date are running 18% ahead of the same period last year, with minimal obvious impact thus far from US tariffs. The figures for May and June will make for interesting reading in this regard to ascertain whether any negative trends are beginning to emerge.

Overall, a strong first four months, up 8.3% on the same period last year, but plenty of uncertainty ahead.