TaxCorporate TaxBiggest companies pay less tax

Biggest companies pay less tax

Just 1% of companies pay 81% of corporation tax

THE BIGGEST 100 companies “generally” pay less tax as a percentage of their earnings than other UK companies, according to new research.

Research from the Oxford University Centre for Business Taxation also found that around a sixth of companies wtih “positive” profits pay no tax at all.

The study, Corporation Tax in the United Kingdom, found that 15% of companies that are part of multinationals pay no tax, while the proportion among companies outside multinationals is 14%.

Shockingly the report revealed that 81% of corporation tax is paid by just the largest 1% of companies while over the last 10 years multinational companies have paid 86% of all corporation tax.

Last year’s Budget in June reduced tax for 64% of companies while it hiked tax for 9%.

The report says: “The small number of companies with very large tax liabilities indicates that there is a large concentration of tax payments amongst UK corporation taxpayers.”

However, the report adds: “If we were able to aggregate corporation tax liabilities to the group level, we would almost certainly find an even greater concentration of corporation tax payments, and possibly a much greater concentration.”

More to follow…

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