A changing tax system

Total tax contribution: results of The Hundred Group 2012 survey

A consistent message that has come from the results of our Total tax contribution survey of The Hundred Group of Companies over the eight years that it has been carried out, is that corporation tax is only part of the picture when considering how much the members of The Hundred Group contribute to the economy. In 2012, for every £1 in corporation tax, another £2 was paid in other business taxes borne, while in 2005 the equivalent figure for those other taxes was £1. Over that period, the total taxes borne have increased by 19%. This shift in the tax burden reflects the policy of successive UK Governments.

The wider contribution made needs to be remembered and properly taken into account when assessing the impact of past policies and considering what new policies may be required to meet future objectives. This year’s report reflects how changes to the tax system have affected the contributions made by large UK businesses and continues our analysis of these trends. This year’s survey covers a period in which the economic indicators continue to be mixed and in which economic growth has been lower than hoped for. The results reflect this difficult economic environment. Transparency around both tax policy and the tax payments made by companies continues to be high on the agenda of both internal and external stakeholders.

Figure 1: The Hundred Group continues to make a substantial contribution to the UK public finances

Figure 1: The Hundred Group continues to make a substantial contribution to the UK public finances

Source: 2012 Total Tax Contribution report, PwC

Figure 2: There is a wider contribution beyond tax including employment and investment

Figure 2: Wider contribution beyond tax including employment and investment

Source: 2012 Total Tax Contribution report, PwC