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…

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

1m 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

4m Emma Smith, Managing Editor
‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

8m Emma Smith, Managing Editor
OTS report: Corporation tax should follow accounts

Corporate Tax OTS report: Corporation tax should follow accounts

10m Alia Shoaib, Reporter
HMRC tax evasion assistance requests double in five years

Corporate Tax HMRC tax evasion assistance requests double in five years

11m Emma Smith, Managing Editor
Q&A with the Financial Secretary to the Treasury

Corporate Tax Q&A with the Financial Secretary to the Treasury

11m Emma Smith, Managing Editor
Spring Budget 2017: Making Tax Digital

Business Regulation Spring Budget 2017: Making Tax Digital

1y Shereen Ali, Deputy Editor
Tax fraud loses HMRC £16bn

Corporate Tax Tax fraud loses HMRC £16bn

1y Emma Smith, Managing Editor