HMRC raised £536.8bn of tax revenues in 2015-16, an increase of £19.1bn (3.7%) on 2014-15, according to the department’s annual report and accounts for 2015-16. It paid £40bn in benefits and credits – about one-fifth of the government’s total benefit expenditure.

The increased amount arose from greater amounts of income tax and National Insurance, which increased by £10.3bn (3.8%), corporation tax, which increased by £4.1bn (9.9%), and VAT, which increased by £2.1bn (1.8%).

HMRC also collected more capital gains tax and …