Company tax take up despite recession
Large companies have seen their overall taxes go up by 19% since 2005 despite the double-dip recession and a drop in corporation tax, according to a new report from PwC.
Contrary to the media attention multinationals have garnered in recent weeks, the total tax contribution of FTSE 100 companies surveyed revealed that despite a 17% fall in CT between 2005 and 2012, other taxes had risen by 58%.
In particular business taxes such as VAT, NICs and business rates had all gone up. The report said that last year, for every £1 of CT paid, the Hundred Group participants paid another £2 in other business taxes.
In total companies paid £77.1bn in tax last year, which equated to 14.2% of total tax receipts.
Andrew Bonfield, chairman of the tax committee of the Hundred Group said: “We're in the middle of a well-trailed programme for reducing the rate of corporation tax while other business taxes such as NI and VAT have risen.
“These other taxes tend to be easier and less volatile since they're not dependent on profits. These latest results show the continued significant contribution of Hundred Group companies despite the double-dip recession,” he said.
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