THE overall tax contribution of the top 100 companies in the UK rose in the 2013, despite a decline in profits earned in the UK by these businesses.
The figures, produced by accountant PwC show total tax contributed up from £77.1bn to £77.6bn. The increase is predominantly due to higher employment taxes, VAT and excise duties. Taxes represent only one element of the wider contribution to the UK economy by the UK’s largest companies.
The companies employ over 2.1m people (7.2% of the UK workforce) who have seen an average wage increase of 2.5%; invested over £26bn in fixed assets (21.4% of UK business investment) and over £5bn in business Research and Development (31.1% of UK business R&D spend).
The proportion of a company’s tax bill made up of Corporation Tax continues to decline, in line with successive government policies. For every £1 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%).
The amount of corporation tax paid by these companies declined from £8bn to £6bn as a result of reduced profits and a lower tax rate.