HMRC’s corporation tax yield up 25%

HMRC’s corporation tax yield up 25%

A combination of lower corporation tax and increased aggression from HMRC has seen a significant rise in yields

THE AMOUNT OF CORPORATION TAX HM Revenue & Customs collects from UK companies has risen 25% to £4bn, from £3.2bn, over the last 12 months.

Increased activity in preventing tax avoidance by large businesses and multinationals engaging in tax avoidance strategy has led to the rise, according to research conducted by law firm Pinsent Masons.

The government has pursued a policy of promoting the UK’s attractiveness to business by cutting the country’s corporation tax rate. It currently stands at 21%, and is due to drop to 20% in the new financial year.

That policy, though, has been accompanied by a more aggressive taxman, which has, Pinsent Masons claims, replaced a working relationship based on regular meetings between the HMRC’s customer relationship managers and companies’ heads of tax with visits by larger teams of inspectors. Those inspectors now seek to interview the CFOs, and even non-executive directors.

Pinsent Masons partner Eloise Walker said: “HMRC has turned up the heat on big corporates and in terms of increasing tax take that has worked.

HMRC is very conscious of the public perception, however misguided that might be, that big companies get away with underpaying corporation tax and HMRC is keen to disprove that and show that it is doing its job.”

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource