The tax contributions of big business
How much tax do large companies, banks and the financial sector contribute to the public finances? Ian Young looks at the latest PwC research detailing the levels of tax contributed by companies through corporation tax, NIC contributions, business rates and VAT, as well as taxes that these organisations collect on behalf of government.
At the end of 2016 PwC published three separate reports into the total tax contribution to the UK public finances by three sectors: the banks, the financial services sector and the largest UK companies, the 100 Group. The results were presented at various seminars in November and December 2016 culminating in the seminar presenting the results of the 100 Group survey on 15 December.
The TTC covers two categories. First, the taxes that companies bear (ie, pay out of their own resources), such as corporation tax, employer’s national insurance contributions (NIC), business rates and irrecoverable VAT. The PwC analysis covers, in addition, the taxes that companies collect on behalf of government, such as fuel duties, PAYE and VAT.