Biggest companies pay less tax
Just 1% of companies pay 81% of corporation tax
THE BIGGEST 100 companies “generally” pay less tax as a percentage of their earnings than other UK companies, according to new research.
Research from the Oxford University Centre for Business Taxation also found that around a sixth of companies wtih “positive” profits pay no tax at all.
The study, Corporation Tax in the United Kingdom, found that 15% of companies that are part of multinationals pay no tax, while the proportion among companies outside multinationals is 14%.
Shockingly the report revealed that 81% of corporation tax is paid by just the largest 1% of companies while over the last 10 years multinational companies have paid 86% of all corporation tax.
Last year’s Budget in June reduced tax for 64% of companies while it hiked tax for 9%.
The report says: “The small number of companies with very large tax liabilities indicates that there is a large concentration of tax payments amongst UK corporation taxpayers.”
However, the report adds: “If we were able to aggregate corporation tax liabilities to the group level, we would almost certainly find an even greater concentration of corporation tax payments, and possibly a much greater concentration.”
More to follow…
