Executive summary
The 2009 Total Tax Contribution survey for The Hundred Group looks at tax payments in members' accounting years ended in the year to 31 March 2009. This was a particularly turbulent period for the UK economy in the midst of global recession. The report shows that despite the economic recession The Hundred Group continues to be a large contributor to UK public finances, contributing 13.1% of the Governments total tax receipts and a quarter of all government corporation tax receipts. While profitability - and therefore corporation tax - fell for many members, payments of other taxes remained steady or actually increased. The impact of the downturn therefore is an increased tax cost for individual members. The average Total Tax Rate increased by four percentage points in 2009, to 42%. This is because payments of many taxes, such as business rates and NIC do not fall with declining profitability and thus have become relatively more expensive.
The findings show that now, more than ever, as we emerge from the recession it is crucial that the UK tax system is internationally competitive.
