According to a recent survey, the UK’s 100 largest companies have contributed £84 billion in tax in 2017/18, a 12.3 per cent rise from the previous year.
Despite the slow economic growth in the UK, the 100 Group saw their tax contributions to the UK tax revenues increase, collectively these companies employ around two million people in the country, who each contribute an average of £12,855 in tax.
The increase in tax contribution is due to the jump in corporation tax payments of £1.9 billion to £27.2 billion. The survey found that for every £1 paid in corporation tax, a further £2.77 was paid in other taxes.
When it comes to value distribution, the Government received 45 per cent through the taxes paid by these companies, while employees received 30 per cent in wages and the remaining 25 per cent was distributed to providers of capital.
The largest element of the total tax contribution was employment taxes which accounts for 30.6 per cent of the total tax burden. Within the 100 group, the retail and financial sectors account for 60 per cent of the total taxes borne.
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.
Furthermore, 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.
Experts have said, 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.