Top 100 largest companies paid £81.5bn in tax, says PwC
This group’s TTC accounted for nearly 10% of total government receipts as the economy emerged from lockdown, but still remains below pre-pandemic levels
The UK’s 100 largest companies increased their total tax contribution (TTC) by 5.3% to £81.5bn between 2021 and 2022, according to a new study by PwC.
The study comes from compiled data provided by 95 of the largest listed companies in the UL, coinciding with the second year of the pandemic, and has been extrapolated to estimate the overall contribution of the 100 group as a whole.
It is reported that this group’s TTC accounted for nearly 10% of total government receipts as the economy emerged from lockdown, but still remains below pre-pandemic levels. They also contributed £25.8bn in capital investment and £10.9bn in R&D while employing 1.9 million people.
According to the 18th annual TTC of the 100 Group produced by PwC, companies contributed an estimate of about £26bn in taxes borne and a further £55.5bn in taxes collected, such as income tax and employee NICs deducted under PAYE, for the year ended 31 March 2022.
From 2021 to 2022, the 100 Group’s tax contribution also increased by 5.2% on a two-year trend basis, which was reportedly driven by net VAT, corporation tax and fuel duty as the economy reopened. However, total tax receipts remain 3.3% lower than before the pandemic, due to the 8% decrease during this period.
In addition, the 100 Group employed approximately 1.9 million people, or 5.8% of the total UK workforce, paying an average wage of £37,514 and contributing employment taxes of £12,903 per employee on average.
Andy Agg, chairman of The 100 Group tax committee, said: “Notwithstanding the new social and economic challenges that have emerged in recent years, this year’s survey highlights the resilience and agility of the 100 Group companies as the UK started to emerge from the pandemic.
“This year’s findings demonstrate that businesses were willing to continue to invest and innovate to play their part in the economic recovery amid considerable uncertainty. It is also important to remember and appreciate the valuable support that the government provided through this period, while also recognising the contribution of the 100 Group to the wider economy and communities around the UK.”
Andrew Packman, tax partner at PwC, added: “As we deal with the impact of geopolitical and economic instability, this report illustrates the key role of large companies in sustaining investment in capital projects and research and development while supporting large numbers of well paid jobs.
“The tax contribution is recovering from the impact of Covid and the amount generated for the Exchequer is all the more important as the government deals with the challenges of the public finances. In difficult times, large and resilient companies are particularly important to our economy.”
