- 2nd May 2019
- Posted by: Suzy Hill
- Category: Business News
UK businesses pay 27% of all tax revenue
UK businesses paid nearly £200bn in tax last year, with their contribution amounting to 27% of all tax revenue, according to the CBI which is calling for further tax simplification
The industry group says its analysis of data published by the Office for National Statistics has found that businesses paid £196bn in taxes in 2018/19, up from £188bn last year.
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.
‘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.’