The survey shows that The Hundred Group companies continue to make a major contribution to the UK economy.
The Total Tax Contribution for the entire membership is estimated at £67.7bn which is equivalent to 13.0% of total UK Government receipts for the year. A little under half (46.6%) of all value distributed by these companies is paid to Government in taxes borne and collected with a further 29.9% going to employees in wages and salaries.
The tax payments made by these companies have risen significantly over the last year and are now back at similar levels to those that existed before the financial crisis and the recession.
Taxes borne have risen by 37.8% for the companies which have participated in both the 2010 and 2011surveys and this is largely driven by corporation tax which accounts for 22.4% points of the increase. During the recession, profits fell and companies paid less corporation tax. With returning profitability, corporation tax payments have recovered strongly. In addition, increases in taxes implemented by Government through legislative change have also boosted payments. The one-off bank payroll tax paid in this survey period, and increases in other taxes borne such as irrecoverable VAT are good examples of this. Both legislative changes and economic conditions have driven the increase in taxes borne.
Taxes collected have remained relatively flat over the last year (1.9% increase). The introduction of the 50% higher rate of income tax and the withdrawal of personal reliefs for higher income earners have largely driven the increase in taxes collected, but this has been offset by falls in excise duties and tax deducted at source during the year.