UK businesses paid approximately £186 billion in tax during the 2017/18 financial year, a new report from the Confederation of British Industry (CBI) has revealed.
Upon analysing figures compiled by the Office for National Statistics (ONS), the CBI has said that British businesses accounted for more than a quarter (27 per cent) of all tax revenue in the last financial year.
The group’s analysis suggests that employers’ NICs (National Insurance Contributions) made up the bulk of business’ tax contributions, at 32 per cent, accounting for £60.3 billion.
This was followed closely by corporation tax revenues, which made up 31 per cent, or £57.2 billion, and business rates, which made up 15 per cent, or 27.4 billion.
The remainder of the £186 billion total was made up of ‘other business taxes’ (15 per cent, or £28.9 billion) and fuel duties (six per cent, or £12.1 billion).
Annie Gascoyne, Head of Economic Policy at the CBI, said that the new data should be taken as indicative of “the symbiotic relationship between tax revenue and growth.”
She said: “The CBI’s analysis shows Britain’s firms are continuing to make a strong tax contribution, despite relatively subdued economic growth in 2017/18.
“Corporation tax revenues continue to go from strength to strength, highlighting the importance of maintaining a competitive and stable tax environment.
“The UK’s future tax system must continue to keep pace with the way our businesses operate in a digital and globalised world,” she said.