Corporate

UK businesses paid nearly £200bn in tax last year

Businesses paid £196bn in taxes in 2018/19, up from £188bn last year, new analysis by the Confederation of British Industry (CBI) analysis of data published by the Office for National Statistics has found.

The total business tax contribution amounts to 27% of all tax revenue.

Corporation tax revenues accounted for 31% (£60bn) of total tax revenue from businesses, Employer’s NIC for 32% (£63bn), business rates for 14% (£28bn), fuel duties for 6% (£12bn) and other business taxes for 17% (£33bn).

Rain Newton-Smith, CBI chief economist, said: “Our analysis shines a timely light on the importance of business to the funding of our schools, hospitals and many other public services. The efforts of successful enterprises, paying a fair share in tax, cannot be taken for granted by politicians at a time of such economic uncertainty.

“From investing in communities and creating opportunities for people, to contributing more than a quarter of the total UK tax-take, businesses are the heartbeat of towns and villages throughout the country.”

She added: “The single most effective remedy to the current structural challenges facing the British economy is a simple one – increased business investment. Any future changes to direct business taxes will need this as a number one priority, keeping in mind the rapid changes that new technology is bringing to the way we work and shop.

“That means a studied, evidence-based approach is paramount to ensure the tax system in our modern economy is stable, transparent and simple.”

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