Sharp fall in corporation tax receipts concerning, warns BDO

Sharp fall in corporation tax receipts concerning, warns BDO

Corporation tax receipts fell 14% year on year

A DRAMATIC FALL in corporation tax receipts should be a cause for concern for the government as it seeks to make further inroads into the deficit, top ten firm BDO has warned.

Figures produced by the Office for National Statistics show £1.36bn was brought into the public coffers from the country’s businesses in August, a 14% drop on the same month last year, when £1.58bn was generated.

Month-on-month comparison shows an even starker fall after £6.9bn was collected in July, meaning receipts fell 80%.

The figures also show income tax figures remained largely the same year on year, with £11.89bn collected in August this year, compared with £11.9bn in August 2014. Again, though, there was a significant fall month on month after July’s £19.7bn haul, which constitutes a 40% difference.

BDO tax partner David Brookes said: “Given that the government is aiming for a budget surplus by 2019/20, the negligible increase in tax receipts compared to last year will come as some concern.

“In particular the sharp fall in corporation tax receipts will need to be addressed and we would strongly recommend the backing of mid-sized businesses, particularly in their aspirations to expand internationally, to accelerate these.

“The notable year-on-year fall in stamp taxes should be seen in the context of an exceptional month for house sales last month resulting from a release of pent-up demand and we would expect things to normalise in this area over the following weeks.”

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In 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 resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource