MPs to investigate companies who pay no tax
Commons Public Accounts Committee to examine why two thirds of the UK's biggest businesses paid little or no corporation tax last year
Commons Public Accounts Committee to examine why two thirds of the UK's biggest businesses paid little or no corporation tax last year
An investigation into why almost two thirds of the UK’s biggest businesses
ended last year paying little or no corporation tax is set to be launched by the
Commons Public Accounts Committee.
A National Audit Office analysis of the 700 companies whose affairs are
handled by HM Revenue & Customs’ large business service revealed that 50
businesses paid 67% of the total tax collected by the service, while 220 paid
none and 210 paid less than £10m.
Liberal Democrat MP Dr John Pugh, a member of the committee, said: ‘We need
to examine the failure of the tax system.’ He dismissed claims that one reason
for the lack of tax was pension top-up payments.
‘This is more than special pleading; it is a distinctly dodgy argument,’ he
said.
He said the committee already had a programme of work, but ‘this is one
report we could legitimately select’, adding: ‘we necessarily look at the
gamekeepers rather than the poachers but we need to examine the failure of the
tax system.’
Senior PAC member Austin Mitchell said companies were justified using profits
to bolster under-funded pension schemes but he was concerned that tax avoidance
using offshore havens is growing.
The Labour MP said: ‘I think the committee ought to look into this. More and
more companies are using financial engineering to avoid paying the social rent
they
owe this country.’
The numbers you crunch tell a story. Your expertis...
17yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn 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 resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleThe amount of tax saved by businesses through HMRC’s Patent Box scheme has increased by 23% over the last five years, from £1.14 billion in 2017/18 to...
View articleUK Chancellor Jeremy Hunt has hinted at the possibility of further tax cuts in the upcoming spring Budget, during his time at the World Economic Forum...
View articleThe legislation, which introduces a global minimum tax of at least 15% for multinational enterprises, aims to limit tax competition and ensure large c...
View articleThe upcoming tax changes in 2024 will significantly impact businesses and individuals in the UK. Accountants play a crucial role in helping clients na...
View articleAccountants must stay vigilant, adapt their tax strategies to evolving regulations, prioritize transparency, and foster collaboration with tax authori...
View articleAs the government prepares for re-election, PM Sunak promises to control spending in order to bring forth tax cuts next year Read More...
View articleThe Office for National Statistics revealed that the UK economy shrank by 0.3% in March after the economy grew by 0.1% in the previous three months Re...
View articleAs the Spring Budget approaches, dissenters of the UK government’s increasingly complex contractor legislation are baying for change. HMRC has already...
View article