(Bloomberg) -- Britain’s 100 largest companies saw their tax bill rise 7.25% in the past year to a total of £90 billion ($113 billion), accounting for a 10th of all of the government’s receipts.
The figures for the year through March from the 100 Group, a collection of the UK’s biggest public and private companies that employ about 5.6% of the workforce, underscore the rising burden tax that’s set to hit the highest level since World War II.
High taxes have become a big issue for the government as the UK taxation as a share of national income heading for a record — despite £20 billion of tax cuts announced in last month’s Autumn Statement. While Prime Minister Rishi Sunak has vowed to reduce taxes, he’s presided over a big jump in what workers and businesses pay.
“This report demonstrates the key role large companies play in the UK to sustain investment in capital projects and research and development, while supporting large numbers of well paid jobs,” said Andy Wiggins, tax partner at PwC.
Investment by the 100 Group shrank by 2% to £25.3 billion.
The leading companies paid £29.1 billion of direct taxes themselves and collected £60 billion of personal taxes from staff. That reflects higher staff wages, an increase in levies to fund health and social care and a windfall tax on energy companies. Frozen tax thresholds drag more people into higher tax brackets.
Leaving tax thresholds unchanged is raising twice as much as the £10 billion the Treasury gave away in relief to encourage investment and £10 billion of personal tax cuts last announced last month by the Chancellor.
The latest round of tax cuts, including the scrapping of the health and social care levy, my mean that next year’s tax take is reduced.
Separate analysis by the Wealth Club, a high net worth investment service, found that just 100,000 wealthy individuals paid £55 billion of all income and capital gains tax, accounting for 24% of the total. According to the report, the 100 highest earners alone paid £46 million each on average.
“It is commonly claimed that wealthy individuals do not pay their fair share of tax. These figures prove what a myth that is,” said Alex Davies, Wealth Club founder.
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