UK: Businesses pay more in taxes, despite cut in corporation tax
30 January 2014
Posted by: Author: Louise Armitstead
Author: Louise Armitstead (The Telegraph)
Business taxes paid to the Treasury rose again last year, despite a £2bn fall in the amount collected from corporation tax, according to PricewaterhouseCoopers.
Britain’s biggest companies paid a total of £77.6bn in tax in the year to March 2013, up from £77.1bn the year before, even though George Osborne cut the headline business tax.
For the first time last year, employment taxes overtook corporation tax as the largest levy paid by PwC’s 100 Group, which includes most of the FTSE100 and some of the UK’s biggest private companies.
National Insurance contributions accounted for 27.5pc of the haul, reflecting higher employment rates and rising wages. PwC said the 100 Group hired 1.3pc more people that the previous year and increased wages to an average of £31,000. Business rates, bank levies, VAT and excise duties contributed to the rise in the overall take.
The corporation tax take fell from £8bn to £6bn over the period, reflecting the reduction in rates but also falling profits from oil and gas companies. The oil and gas sector, together with financial services, contributed nearly half the total tax take. However, contributions from the retail, insurance and telecoms sectors grew from the year before.
This article first appeared on telegraph.co.uk.