Almost a third of UK business pays no tax

Almost a third of UK business pays no tax

NAO report reveals that 30% of the UK's 700 largest companies pay no tax

nao office

The NAO has uncovered the stunning fact that almost a third of the UK’s 700
largest companies do not pay a single cent of corporation tax, with a further
30% paying less than £10m each.

The revelations are almost certain to raise the pressure on private equity
groups and multinationals, who are able to dramatically cut the tax they owe by
claiming interest relief on debt or using intra-group loans.

Other reasons cited for the low tax bills include low profitability, claiming
tax losses and pension fund contributions.

The NAO research did acknowledge that the large businesses paid more than
half (54%) of the UK’s corporation tax takings. According to the NAO large
corporations paid £24.4bn in corporation tax in 2005/2006.

Further reading:

Read the
NAO
report here

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

2m Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

2m Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

4m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

5m Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

5m Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

8m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

8m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

9m Alia Shoaib, Reporter