Rates drive up retail burde

Posted on 04 Mar 2020
Share Blog Post

The UK’s biggest retailers have seen their total tax burden increase by two thirds over the past seven years, reaching nearly £8.3bn last year, according to research by PwC say Harris & Co accountancy services.

The firm’s analysis of the amount of tax paid by retailers in the Hundred Group of companies, which includes most of the FTSE 100 and some large private companies, shows it has gone up by 65% since 2005.

PwC says the total tax rate for big retailers is 59%, compared with an average of 39% across all industries in the group. It calculates that retailers are paying 11% more in corporation tax, while other business taxes, including business rates, and employers’ NICs have risen almost 80%.

PwC found that for every £1 of corporation tax, the UK’s biggest retailers bore almost £2.40 in other taxes, of which £1.44 related to business rates, and 64p related to employers’ national insurance contributions.

Mary Monfries, head of tax policy at PwC, said: ‘The rise in business rates in particular is felt by retailers given their large property portfolios.’

In total, PwC calculated that the big retailers bore £3.99bn of tax in 2012, up from £3.86bn in 2011. When VAT and employees’ NICs are added in, their full tax contribution was £8.28bn, up from £8.17bn in 2011.

View more blog posts

Plea to simplify tax
Posted on 17 Jul 2024
Plea to simplify tax
read more
New National Wealth Fund launched
Posted on 10 Jul 2024
New National Wealth Fund launched
read more
Tax freezes hit hard
Posted on 03 Jul 2024
Tax freezes hit hard
read more
IHT rises relentlessly
Posted on 26 Jun 2024
IHT rises relentlessly
read more
Back To Top
01604 660661