2023 Total Tax Contribution survey of the 100 Group
Now in its 19th year, the annual survey collects data from 100 Group members and reports on the contribution made in taxes borne, taxes collected and the wider economic contribution.
We have analysed trends over the last 12 months and also the last 19 years, highlighting the changing tax profile and how changing economic conditions and legislation have impacted these trends.
Taxes borne and TTR
Taxes borne and the total tax rate (TTR) for the 100 Group both increased this year:
- Employer NICs and the Energy Profits Levy have driven a 9.9% increase in taxes borne in 2022/23.
- Taxes borne by the 100 Group are almost half of commercial profits (TTR: 49.0%). The increase in taxes borne, without a corresponding increase in profits, led to a 9.1 percentage point increase in the TTR.
Total Tax Contribution
The Total Tax Contribution (TTC) increased by £8.3bn in 2022/23.
- The TTC of the 100 Group was £89.8bn in 2022/23, comprising:
- £29.1bn of taxes borne
- £60.6bn of taxes collected
- Representing 10.0% of total government receipts
30 business taxes
The TTC methodology this year includes 30 business taxes, the highest number of taxes since the survey began.
- There are two new taxes in this year’s survey:
- Plastic Packaging Tax
- Energy Profits Levy
Research and development
100 Group Research & Development (R&D) expenditure increased for the 3rd consecutive year.
- There was a 14.9% increase in R&D expenditure in 2022/23
- Total UK R&D expenditure by survey participants was £12.5bn
Explore 19 years of the 100 Group’s Total Tax Contribution
Explore the data from our TTC surveys in more detail, comparing the change in profile between different years and different taxes.
The survey collects data from 100 Group members on the contribution made in all taxes borne - the taxes that represent a cost to the company such as corporation tax, employer national insurance contributions, business rates, irrecoverable VAT and bank levy.
The changing profile of taxes borne between 2005 and 2023
Analysis over the 19 years of the survey shows a significant change in the profile of taxes borne. The contribution made to total taxes borne by taxes other than corporation tax is greater in 2023 when compared with 2005. This changing profile for the 100 Group suggests that tax revenues contributed by this group of companies have become materially less dependent on corporation tax. There has been a consistent trend away from a tax based on profits to taxes based on people, production and property.
Trends in taxes between 2005 and 2023
Over 19 years, the TTC survey has collected an extensive bank of data on tax payments by the 100 Group members. 26 companies have provided data in all the surveys we have undertaken. This enables us to look at the trends in their results on a like for like basis, taking 2005 as 100% for each tax.
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Corporation tax
Corporation tax in 2023 is lower than when the survey began in 2005, whereas other business taxes borne have increased significantly. The decrease in corporation tax is due to a number of factors: reductions in the statutory rate of corporation tax (from 30% in 2005 to 19% from April 2017), but also, between 2010 to 2015, reduced contributions from the oil and gas sector due to lower oil prices and production levels, from the retailers due to challenging economic conditions, and from the financial services sector, mainly due to brought forward losses.
In 2016 there was an increase in corporation tax for the first time since 2011, following a greater contribution from the financial services sector due to legislative changes affecting the banks and strong performance of investment assets affecting the insurers. Following three consecutive annual increases, corporation tax paid by these 26 companies decreased in 2019 as a result of lower profits and decreased once again in 2021 as a result of the COVID-19 pandemic. Since 2021, there have been two consecutive years of corporation tax increases as profits recovered following the pandemic.
Government legislation has had a clear impact on the corporation tax paid by the banks in the survey, with tighter loss relief legislation, non-deductibility of compensation payments, and the introduction of the bank surcharge in January 2017.
Tighter loss relief legislation applied to other industry sectors from April 2017, with 50% of taxable profits eligible to be offset by carried forward losses. Legislation restricting corporate interest deductions was also introduced from April 2017. In 2023, corporation tax is once again the largest borne by 100 Group companies.
Notes about the survey
- Charts are based on data provided by survey participants in each survey.
- PwC has anonymised and aggregated this data to produce the survey results.
- All 19 TTC surveys with the 100 Group use the same PwC TTC methodology which enables the results to be compared.
- PwC has not verified, validated or audited the data and cannot give any undertakings as to the accuracy of the survey results in that respect.
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