UK’s biggest firms responsible for 10 per cent of entire Treasury take last year
The UK’s largest listed firms saw their overall tax contribution lift to £89.8bn last year – equivalent to 10 per cent of total government receipts.
New analysis by PwC suggested that the taxes directly borne by the UK’s largest companies increased by 9.9 per cent in 2022/23, to £29.1bn.
Indirect contributions through income tax and other levies topped up the bill.
The vast increase in the total tax contribution, of 7.2 per cent, was driven by increased employment taxes and the energy profits levy – better known as the windfall tax.
National Insurance contributions increased as the government looked to restore markets’ faith in the UK’s fiscal framework after Liz Truss’ mini-budget went sideways.
Despite the increased tax bill, capital investment from the top 100 firms remained above £25bn.
The so-called ‘100 Group’ employed 1.8m people in 2022/23, just under 6 per cent of the total workforce. Those firms paid an average of just over £40,000 per annum to each employee – with a resulting tax bill through PAYE and NI of £14,601.
Andy Agg, Chair of the 100 Group tax committee, said: “With total tax contribution reaching its highest level since the survey began, the report demonstrates the significant contribution to public finances the 100 Group provides.
“Beyond that, the findings illustrate that large businesses are consistently providing high levels of investment and innovation, during a time of challenging economic conditions and heightened geopolitical uncertainty, that have helped foster economic growth throughout the UK economy,” he added.
The figures come the day after new figures revealed just 0.3 per cent of taxpayers – around 100,000 individuals – paid 24 per cent of all income tax and capital gains tax collected by the Treasury.
The concentration of contributions across both business and personal taxation means that the UK is particularly vulnerable to those big-payers upping sticks.
John O’Connell, chief executive of the TaxPayers’ Alliance, said: “High taxes are damaging growth, squeezing household budgets and risking an exodus of high-value taxpayers.
“There’s a danger that some of the biggest contributors leave the UK for friendlier countries and take jobs and businesses with them. Ministers should work to create a simpler and more competitive tax regime to benefit all taxpayers.”