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.
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%
Find out more about Total Tax Contributions: