Taxes Fall for Britain’s Biggest Companies During the Pandemic

(Bloomberg) --

Britain’s 100 biggest companies paid 7.8% less in taxes in the first year of the pandemic as profits fell and they took advantage of tax breaks, according to an annual survey by accountants PWC.

The 100 Group paid 77 billion pounds ($103 billion) in tax in the year to March 2021, PwC said. Of that, 24.7 billion pounds was borne directly and the rest was collected largely for employees through income tax and national insurance contributions. The previous year, the 100 Group paid 84 billion pounds in total taxes.

The Treasury is raising taxes to keep a lid on the deficit after a year in which its borrowing ballooned to almost 100% of GDP. Big businesses last year increased their contribution as a share of the total tax take, from to 11.4% from 11.3%.

The group saw its business rates fall 3.4% thanks to Covid-19 tax cuts for retailers and hospitality. Corporation taxes fell 1.5% as profits shrunk 53%. Despite the pandemic, the group as a whole maintained employment at 1.9 million.

©2021 Bloomberg L.P.