TaxCorporate TaxFTSE 100 corporation tax contribution down £2bn

FTSE 100 corporation tax contribution down £2bn

Overall tax contribution from large companies rises despite fall in profits, survey by influential group of FDs finds

FTSE 100 corporation tax contribution down £2bn

THE CORPORATION TAX CONTRIBUTION from the FTSE 100 fell to £6bn from £8bn last year, despite the overall tax input from the group rising, a survey by PwC and the Hundred Group of finance directors has revealed.

The results come despite profits from the companies dropping during 2013, with total tax contributed up from £77.1bn to £77.6bn. The increase is predominantly due to higher employment taxes, VAT and excise duties.

The fall in corporation tax yield is falls in line with successive government cuts to the rate, alongside the fall in profits, on which it is levied. For every pound of corporation tax paid, the UK’s big firms now pay £2.86 in other taxes.

For the first time, employers’ National Insurance contributions now make up the largest chunk of businesses’ tax costs at 27.5%. As Hundred Group companies employed more people – a 1.3% increase on 2012 – in the UK and increased their wages to an average of over £31,000, their employment tax costs rose, as did the employment taxes they collect. Business rates and bank levy rates have, again, increased year-on-year.

CBI chief policy director Katja Hall (pictured) said: “Despite the public perception and media debate on business and taxation, the vast majority of businesses pays, and wants to pay, the right amount of tax.

“This survey shows that the tax contribution of the FTSE100 has remained constant, contributing 14% of government receipts, despite a cut in corporation tax.

“It is also interesting to see that the profile of tax contribution is shifting from corporation tax to employer’s National Insurance Contribution, as businesses employ more people and increase wages.”

Related Articles

Autumn Statement 2016: Higher taxes for a simplified system, say businesses

Corporate Tax Autumn Statement 2016: Higher taxes for a simplified system, say businesses

11m Stephanie Wix, Writer
Corporation tax cut and high-tech reliefs outlined by May to CBI

Corporate Tax Corporation tax cut and high-tech reliefs outlined by May to CBI

11m Stephanie Wix, Writer
Prosecutors call for tougher Luxleaks sentences

Accounting Firms Prosecutors call for tougher Luxleaks sentences

1y Richard Crump, Writer
Former PwC employees to stand trial over Luxleaks scandal

Accounting Firms Former PwC employees to stand trial over Luxleaks scandal

1y Fraser Simpson, Reporter
Finance sector contributes £66bn in taxes

Corporate Tax Finance sector contributes £66bn in taxes

2y Calum Fuller, Reporter
Former PwC employees found guilty in Luxleaks trial

Accounting Firms Former PwC employees found guilty in Luxleaks trial

1y Fraser Simpson, Reporter
UK votes to leave EU – accountancy profession reacts

Accounting Firms UK votes to leave EU – accountancy profession reacts

1y Fraser Simpson, Reporter
Deloitte propels into SME market with £2.5m accounting services investment

Accounting Firms Deloitte propels into SME market with £2.5m accounting services investment

1y Fraser Simpson, Reporter