Total Tax Contribution - Surveying the Hundred Group

Total Tax Contribution

Our latest Total Tax Contribution report shows that Britain’s biggest retailers are feeling the impact of a total tax rate that has increased by almost two-thirds over the past eight years. The retailers in the Hundred Group now have a total tax rate of 59%, compared with an average of 39% across other industries in the Hundred Group.

Key findings

The Total Tax Rate1 for major UK retailers is 59%

1 The total tax rate is a measure of the cost of all taxes borne in relation to UK profitability. It is calculated by taking total tax borne (those that hit companies’ profits) as a percentage of profit before total taxes borne.

For every £1 of corporation tax paid, large UK retailers are now paying £2.40 in other taxes from their profits which reflects various changes made by successive Governments to fiscal policy

The tax burden on retailers in The Hundred Group has increased by 65% since 2005. Payments of corporation tax have increased by 11% while other taxes borne including business rates and employers’ national insurance contributions have increased by almost 80%

Large UK retailers employ over a third of The Hundred Group work force distributing 40% of the value they create in wages

Figures for the retail sector as a whole support these findings – business rates have increased by over 30% between 2008 and 2010 while corporation tax payments have increased by over 6%

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