BusinessCompany NewsJD Wetherspoon says pub tax is killing industry

JD Wetherspoon says pub tax is killing industry

JD Wetherspoon hits out at government's tax regime for contributing to pub closures

JD
Wetherspoon
has hit out at the government’s pub tax regime for
placing a ‘considerable burden’ upon many pubs.

Releasing its interim figures, the pub chain complained that the government
‘does not seem to understand’ the impact of new taxes and legislation which
imposes huge burdens on the industry.

‘Opportunistic ‘tax grabs’ and employee legislation to ’curry favour’ with
voters which businesses cannot afford will prove to be counter productive for
the government,’ said chairman Tim Martin.

‘Even the closure of one small pub results in a far greater loss of revenue
to the government than it does to the publican or pub owner. Costs of taxes and
regulations have gone too far and Britain has now become a highly taxed economy,
with high and increasing employment costs, which will have predictable and
inevitable effects on employment levels and tax income in the near and medium
term.’

It showed a 2% rise in profits for the six months to 25 January 2009 of
£30.8m (before exceptional items). Taxes generated by the group totaled £190m.

On an annualised basis, this equates to the group making £50,000 after-tax
profit per pub, while generating tax of about £530,000 per pub, added Martin.

Increased excise duty and new legislation relating to holiday entitlements
will cost the group an extra £19m for the financial year.

Further reading:

Non-doms dissatisfied with changes
to tax regime

Related Articles

M&S business rate liabilities based on £570m rateable value

Company News M&S business rate liabilities based on £570m rateable value

4m Emma Smith, Managing Editor
BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

8m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

1y Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

1y Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

1y Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

1y Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

1y Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

1y Emma Smith, Managing Editor