The research revealed that the UK’s headline 30% tax rate is far from the actual rate, and that it is inching up surreptitiously each year when viewed as an effective tax rate against a company’s accounting profits.
‘This analysis is clear proof that the headline rate of corporate tax is not the real story since few companies pay exactly that headline rate on their profits,’ said Derek Jenkins, corporate tax partner at PwC.
The Big Four firm has called for a review into how corporate tax is applied in the UK. ‘While it seems unlikely that we will see corporate tax rate cuts in the forthcoming Budget, there are undoubtedly pressures for change and this trend highlights the need for a significant review of how corporate tax will apply,’ said Jenkins.
MTD represents 'the single most significant change to the UK’s system of taxation in recent times', says Knill James partner Nick Rawson. So, how prepared are SMEs for digital tax reporting?
The SME community voices concern about the chancellor's measures in the Spring Budget
Following chancellor Philip Hammond’s Spring Budget speech, we explore the key takeaways for businesses and individuals
Unincorporated businesses under the VAT threshold given an extra year to prepare before MTD becomes mandatory