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Total Tax Contribution of the 100 Group

Welcome to the thirteenth 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 2017, along with the trend analysis over the thirteen years of the survey.

Survey results

Our short video outlines the key findings from this year’s survey, emphasising the continuing importance of the 100 Group to the UK economy, with the seventh consecutive annual increase in TTC, along with their impact on the wider economy through their supply chains, capital investment, research and development and the creation of high-value jobs.

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The Total Tax Contribution of the 100 Group increased in 2017, reaching £82.9bn
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The Total Tax Contribution of the 100 Group increased in 2017, reaching £82.9bn

This includes both taxes borne of £25.3bn and taxes collected of £57.6bn, and represents 12.6% of total government receipts.

 

The 100 Group supports the broader UK economy in a number of important ways:

  • UK suppliers: On average, each 100 Group participant supported 6,800 UK suppliers, including SMEs
  • Gross Value Added: For the 100 Group we estimate GVA per employee of £66,000. This compares to an average GVA per employee of £55,000 in the wider UK economy.
  • Capital investment: Survey participants spent £26,609m on capital investment in 2017 (an increase of 1.7% since 2016)
  • R&D expenditure: Survey participants spent £9,248m on research and development in 2017 (an increase of 7.7% since 2016)

 

The 100 Group supports the broader UK economy
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Taxes borne increased by 6.3% from 2016 to 2017
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Taxes borne increased by 6.3% from 2016 to 2017

The increase was largely driven by a 33.0% increase in corporation tax (accounting for 6.5 percentage points of the increase in taxes borne), and a 4.4% increase in employer NIC (1.3 percentage points of the total increase). Of the 6.3% increase in taxes borne, the banks accounted for 3.2 percentage points and the retailers for 1.6 percentage points. The increase in corporation tax was due to a number of factors: the introduction of the bank surcharge from January 2016, loss relief and compensation payment restrictions affecting the banks, and increasing profitability within the 100 Group.

At 30.6% employment taxes remain the largest element of the Total Tax Contribution

We estimate the 100 Group employed 2.1 million people in the UK, representing 6.5% of the total UK workforce, paid an average wage of £34,266 (the national average is £28,600) and contributed average employment taxes of £12,374 per employee.

At 30.6% employment taxed remain the largest element of the Total Tax Contribution
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The profile of taxes borne has changed, moving from corporation tax to other business taxes
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The profile of taxes borne has changed, moving from corporation tax to other business taxes

Other business taxes, such as business rates, irrecoverable VAT and employer NIC, have increased significantly since the survey began. For every £1 of corporation tax, there was another £2.91 in other business taxes borne by 100 Group companies. In 2005, the ratio was 1:1.

Explore the Total Tax Contribution of the 100 Group over the last thirteen years

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.

The changing profile of taxes borne between 2005 and 2017

Over the thirteen 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 2017 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.

Trends in taxes between 2005 and 2017

Over thirteen years, the TTC survey has collected an extensive bank of data on tax payments by the 100 Group members. Twenty-eight 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.

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Trends in taxes between 2005 and 2017

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.

year,Corporation tax,Employers' NIC,Business rates,Irrecoverable VAT,Petroleum revenue tax,Bank Levy,Other
2005,50,20,11,9,4.1,0,5.9
2006,52.1,16.9,12.6,8.3,5.8,0,4.3
2007,55.9,15.2,11.5,7.8,5.7,0,3.9
2008,46.8,20.2,14.1,9.7,4,0,5.3
2009,44,21.4,14.5,9.4,6.5,0,4.3
2010,33.7,27.4,20.3,10.6,2.8,0,5.2
2011,39.5,23.3,15,10.7,2.5,0,8.9
2012,32.8,25.2,16.9,13.8,3.1,3.2,5
2013,25.9,27.5,18.9,14.1,3.1,5.2,5.3
2014,23.4,28.2,19.5,15,1.3,5.9,6.6
2015,18.3,29.4,21,15.6,0.4,8.1,7.2
2016,19.7,27.7,20.9,15.1,0,9.6,7
2017,25.2,27.3,18.9,14,0,8.3,6.3
year,Corporation tax,Other taxes borne,Taxes borne,Irrecoverable VAT,Business Rates,Employers' NIC
2005,100,100,100,100.0,100.0,100.0
2006,128.6,114.9,113.9,95.8,126.9,102.4
2007,145.8,119.5,128.9,95.7,144.7,106.7
2008,103.5,127.1,115.0,107.4,145.4,115.4
2009,90.6,129.7,112.2,113.8,131.1,103.3
2010,29.6,124.8,84.6,111.7,142.5,102.9
2011,81.7,147.3,122.7,149.2,148.1,117.2
2012,83.6,158.4,113.8,189.8,161.2,149.5
2013,56.5,171.5,107.6,197.9,171.7,147.8
2014,49.6,172.6,101.2,219.8,178.0,146.4
2015,41.2,176.8,98.6,221.0,185.5,148.4
2016,46.0,179.5,102.9,220.5,192.6,148.7
2017,62.0,176.4,107.4,208.0,191.2,155.5

Notes about the survey

  1. Total taxes borne in 2017 are higher than in 2005.
  2. Charts are based on data from survey participants in each survey.
  3. PwC has anonymised and aggregated this data to produce the survey results.
  4. All thirteen TTC surveys with the 100 Group use the same PwC TTC methodology which enables the results to be compared.
  5. PwC has not verified, validated or audited the data and cannot give any undertakings as to the accuracy of the survey results in that respect.

 

Contact us

Andrew Packman
Total Tax Contribution and Tax Transparency leader, PwC United Kingdom
Tel: +44 (0)189 552 2104
Email

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