WIREDGOV

New CBI analysis of data published by the Office for National Statistics has found that businesses paid £196 billion in taxes in 2018/19, up from £188 billion last year.

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

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

Rain Newton-Smith, CBI Chief Economist, yesterday 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.

“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.”