According to the findings of a recent survey involving 100 of the UK’s largest publicly quoted businesses, the UK’s largest firms contributed £85 billion in corporation tax last year, the ninth consecutive rise in the tax take.
The Total Tax Contribution (TTC) report shows that the overall figure rose slightly during the 12 months to the end of March despite sluggish economic growth and a decrease in collective profitability.
However, the figures also show a modest fall, in the volume of taxes, such as business rates and corporation tax, paid directly by the companies themselves, from £27.2 billion last year to £26 billion this year.
Corporation tax is an important source of revenue for the Government, accounting for approximately 9 per cent of the total tax take. However, the amount raised by the tax has fallen dramatically over the past 10 years, from 28 per cent to 19 per cent despite economic conditions improving.
The timing of the TTC report feeds into the election campaigns of the major parties, which are all promising large amounts of public spending, particularly on the NHS and education.
For help and advice with any aspect of tax including business tax contact a member of our team today.