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.
The TTC of the 100 Group, made up of £25.3bn of taxes borne and £57.6bn of taxes collected.
The ratio of corporation tax to other taxes borne.
UK suppliers (including SMEs) supported by each 100 Group company.
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.
This includes both taxes borne of £25.3bn and taxes collected of £57.6bn, and represents 12.6% of total government receipts.
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.
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.
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.
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.
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.
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.
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.
Notes about the survey