Total Tax Contribution of the 100 Group
Welcome to the twelfth PwC Total Tax Contribution (TTC) annual survey of the 100 Group. This report presents the analysis of data received from 100 companies, displaying the TTC and wider economic contribution for 2016, along with the trend analysis over the twelve years of the survey.
The Total Tax Contribution of the 100 Group, made up of £23.7bn of taxes borne and £58.6bn of taxes collected.
The ratio of corporation tax to other taxes borne.
Half of the value distributed by the 100 Group goes to the Government in taxes.
Andrew Packman, leader of the Total Tax Contribution Group in the UK, introduces the key findings from this year’s survey, which emphasises the continuing importance of the 100 Group to the UK economy, and how the impact of tax policy varies by industry sector.
The Total Tax Contribution of the 100 Group was £82.3 billion, up from £80.5 billion in 2015. This includes both taxes borne of £23.7bn and taxes collected of £58.6bn, and represents 13.3% of total government receipts.
Corporation tax is the third largest tax borne, after employers’ NIC and business rates. The contribution from corporation tax has increased by 9.2% from the previous year, despite the statutory rate being at its lowest level since the survey began 12 years ago.
The impact of tax policy varies by industry sector. Business rates are the largest tax for retailers, and a significant tax for telecoms and utilities. Bank levy is the largest tax for banks, and irrecoverable VAT continues to be a substantial tax for insurers.
The proportion of taxes borne by industry sector continues the recent trend away from oil and gas companies and towards the financial services sector.
There was an increase in taxes borne of 3.6% compared to 2015, driven mainly by increases in corporation tax and bank levy.
Banks and insurers are driving the increase in corporation tax. The banks have been affected by legislative changes and the tax payments of insurance companies reflect buoyant gilt and bond markets.
The contribution from the banking sector increased further due to rising bank levy rates contributing to an increase of 24.4% in bank levy from the previous year.
We estimate the 100 Group employed 2.1 million people, representing 6.6% of the total UK workforce, paid an average wage of £33,220 (the national average is £28,200) and contributed employment taxes of £12,135 per employee on average.
Over the last five years, survey participants have spent £130.6 billion on capital investment and £32.9 billion on research and development.
Half of the value distributed – a measure of the relative value received by each stakeholder – by 100 Group participants goes to the government in taxes (50.5%).
Our tool below allows you to explore the data from our Total Tax Contribution survey in more detail, comparing the change in profile between different years and different taxes.
The survey collects data from 100 Group members on the contribution made in all taxes borne - the taxes that represent a cost to the company such as corporation tax, employers’ NIC, business rates, irrecoverable VAT, and bank levy.
Over the twelve years of the survey, a major finding is the change in profile of taxes borne. The contribution made to total taxes borne by taxes other than corporation tax is greater in 2016 when compared with 2005. This changing profile for the 100 Group suggests that tax revenues contributed by this group of companies have become materially less dependent on corporation tax. There has been a consistent trend away from a tax based on profits to taxes based on people, production and property.
Over twelve years, the TTC survey has collected an extensive bank of data on tax payments by the 100 Group members. Thirty three companies have provided data in all the surveys we have undertaken. This enables us to look at the trends in their results on a like for like basis, taking 2005 as 100% for each tax.
Over eleven years, the TTC survey has collected an extensive bank of data on tax payments by the 100 Group members. Thirty four companies have provided data in all the surveys we have undertaken. This enables us to look at the trends in their results on a like for like basis, taking 2005 as 100% for each tax.
Notes about the survey