Continuing to invest in the UK economy

The Total Tax Contribution (TTC) of the 100 Group for 2019

#TotalTax100

Total Tax Contribution of the 100 Group Survey Results 2019

The Total Tax Contribution 2019 report presents the tax and economic contribution of the largest listed companies in the UK for 2018-19.

Now in its 15th year, the annual survey collects data from 100 Group members on their UK tax contribution and reports on the contribution made in taxes borne, taxes collected, and the wider economic contribution.

We have analysed trends over the last 12 months and also the last 15 years, highlighting the changing tax profile and how changing economic conditions and legislation have impacted these trends.

Total Tax Contribution

The 100 Group sustained its record tax contribution in 2019 and continues to invest in the UK economy.

  • The TTC of the 100 Group in 2019 was £84.7bn in 2019, including:
    • £26.0bn borne
      Taxes borne by a company are those that represent a cost to the company and are reflected in its financial results, e.g. corporation tax, employer NIC and business rates, etc.
    • £58.7bn collected on behalf of government
      Taxes collected are those which are generated by a company’s operations, and are not a tax liability of the company, e.g. income tax deducted under PAYE and net VAT, etc. The company generates the commercial activity that gives rise to the taxes and then collects and administers them on behalf of HMRC.
  • The 100 Group’s total tax contribution represented 11.7% of total government receipts in 2019.

Value Distributed

The value of large businesses extends beyond their shareholders. The 100 Group’s total value distributed includes wages and salaries to employees, taxes borne and collected to the government and profits distributed to shareholders or retained for reinvestment.

Value distributed in 2019 included:

  • 15.3% profit after tax (shareholders/reinvestment)
  • 30.1% wages and salaries net of employment taxes (employees)
  • 33.8% taxes collected (government)
  • 13.9% taxes borne (government)
  • 6.9% net interest (financing)

Total Tax Rate

The total tax borne as a proportion of commercial profit was 41.3% for the 100 Group in 2019. This was a rise of 2.6 percentage points due to profits falling and taxes that are not dependent on profit being sustained.

Broader Investment

The contribution large companies make to society extends beyond the value of goods and services produced, and taxes paid:

  • Employment: the 100 Group collectively employs around 2 million people, 6.1% of the total UK workforce.
  • Capital investment: in a period of falling business investment in the wider UK economy, capital investment by the 100 Group increased by 9.6% in 2019, reaching £26.8bn.
  • R&D expenditure: R&D expenditure: the 100 Group invested £9.3bn in research and development in 2019, 2.0% down compared to the previous year.

Explore 15 years of the 100 Group’s Total Tax Contribution

Explore the data from our TTC surveys 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 2019

Analysis over the 15 years of the survey shows a significant change in the profile of taxes borne. The contribution made to total taxes borne by taxes other than corporation tax is greater in 2019 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 2019

Over 15 years, the TTC survey has collected an extensive bank of data on tax payments by the 100 Group members. Twenty-seven 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.

Press on dot for figure

Corporation tax

Over the survey period, corporation tax has been on a downward trend, while the amounts of other business taxes borne have increased. The fall in corporation tax is due to a number of factors: reductions in the statutory rate of corporation tax, but also, between 2010 to 2015, reduced contributions from the oil and gas sector due to lower oil prices and production levels, from the retailers due to challenging economic conditions, and from the financial services sector, mainly due to brought forward losses.

In 2016 there was an increase in corporation tax for the first time since 2011, following a greater contribution from the financial services sector, largely due to legislative changes affecting the banks and strong performance of investment assets affecting the insurers. Following three consecutive annual increases, the total corporation tax paid by 100 Group companies decreased in 2019, as a result of decreasing profits for the survey participants. Government legislation has had a clear impact on the corporation tax paid by the banks in the survey, with tighter loss relief legislation, non-deductibility of compensation payments, and the introduction of the bank surcharge in January 2016.

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
2018,26.5,25.8,18.5,13.3,0,8.1,7.8
2019,24.3,27.0,19.1,15.0,0,6.9,7.7
year,Corporation tax,Other taxes borne,Taxes borne,Irrecoverable VAT,Business Rates,Employers' NIC
2005,100,100,100,100.0,100.0,100.0
2006,129.5,114.9,114.2,95.7,127.0,102.2
2007,145.9,119.5,129.1,93.1,144.7,106.4
2008,101.1,127.1,115.1,104.2,145.5,114.9
2009,90.4,129.8,112.5,105.9,131.1,103.0
2010,29.1,124.9,84.7,107.4,142.7,102.7
2011,80.7,147.4,123.0,145.7,148.3,117.0
2012,84.0,158.4,114.1,184.1,161.4,149.3
2013,54.9,171.6,107.7,193.1,171.9,147.7
2014,49.7,172.6,101.2,217.3,178.2,146.2
2015,39.6,176.8,98.7,210.2,185.7,148.1
2016,44.9,179.5,103.1,211.1,192.9,148.1
2017,61.1,176.3,107.4,198.4,191.4,154.9
2018,80.2,184.6,117.9,197.2,190.9,158.5
2019,67.7,185.9,115.5,217.8,194.1,156.3
Notes about the survey
  1. Total taxes borne in 2019 are higher than in 2005.
  2. Charts are based on data provided by survey participants in each survey.
  3. PwC has anonymised and aggregated this data to produce the survey results.
  4. All 15 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.
Follow us

If you have a question on any Total Tax Contribution related issue, please submit it here

By submitting your information, you acknowledge that we may send you material relevant to your interests.
Please see our privacy statement for details of why and how we use personal data and your rights (including your right to object and to stop receiving marketing communications from us). To stop receiving marketing communications from us, click on the unsubscribe link in the relevant email received from us or send an email to unsubscribe@uk.pwc.com.

Contact us

Andrew Packman

Total Tax Contribution and Tax Transparency leader, PwC United Kingdom

Tel: +44 (0)189 552 2104

Hide