News
Jessica Fino 12 Dec 2018 10:55am

Biggest UK companies pay £84bn in tax

The UK’s 100 largest companies have contributed £84bn in tax in 2017/18, a 12.3% increase since the previous year

According to a PwC survey, the 100 Group saw their tax contributions to the UK tax revenues increase despite a slowing economic growth.

PwC said these companies employ around two million people in the country, who each contribute an average of £12,855 in tax.

The surge in tax contribution has been driven by a jump in corporation tax payments of £1.9bn to £27.2bn. For every £1 paid in corporation tax, a further £2.77 was paid in other taxes borne, the survey found.

When it comes to value distribution, the government received 45% through the taxes paid by these companies, while employees received 30% in wages. The remaining (25%) was distributed to providers of capital.

Employment taxes were the largest element of the total tax contribution, accounting for 30.6% of the total tax burden. The retail and financial services sectors accounted for 60% of total taxes borne by the 100 Group.

Kevin Nicholson, PwC’s UK head of tax, said, “Businesses that rely on significant levels of employment and property have seen their tax burden increase significantly in recent years, resulting in an uneven impact across industry sectors.

“As technology continues to develop at a rapid rate and businesses face ongoing unpredictability, it’s never been more important that the UK has a tax system that continues to encourage investment and is fit for future ways of working and doing business.”

He added, “With Brexit looming, now is the time for an open and all-encompassing discussion about the potential tax scenarios and the trade-offs they would involve.”

Topics