FTSE 100 corporation tax contribution down £2bn

by Calum Fuller

More from this author

30 Jan 2014

  • Comments
City of London

THE CORPORATION TAX CONTRIBUTION from the FTSE 100 fell to £6bn from £8bn last year, despite the overall tax input from the group rising, a survey by PwC and the Hundred Group of finance directors has revealed.

The results come despite profits from the companies dropping during 2013, with total tax contributed up from £77.1bn to £77.6bn. The increase is predominantly due to higher employment taxes, VAT and excise duties.

The fall in corporation tax yield is falls in line with successive government cuts to the rate, alongside the fall in profits, on which it is levied. For every pound of corporation tax paid, the UK's big firms now pay £2.86 in other taxes.

For the first time, employers' National Insurance contributions now make up the largest chunk of businesses' tax costs at 27.5%. As Hundred Group companies employed more people - a 1.3% increase on 2012 - in the UK and increased their wages to an average of over £31,000, their employment tax costs rose, as did the employment taxes they collect. Business rates and bank levy rates have, again, increased year-on-year.

CBI chief policy director Katja Hall (pictured) said: "Despite the public perception and media debate on business and taxation, the vast majority of businesses pays, and wants to pay, the right amount of tax.

"This survey shows that the tax contribution of the FTSE100 has remained constant, contributing 14% of government receipts, despite a cut in corporation tax.

"It is also interesting to see that the profile of tax contribution is shifting from corporation tax to employer's National Insurance Contribution, as businesses employ more people and increase wages."

Visitor comments

blog comments powered by Disqus

Add your comment

We won't publish your address

By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

  • Send



Conservatoire for Dance and Drama, London, Permanent, Part Time, £60,000 pro rata




Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials


Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you



Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.


iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.