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Business: Tax Yields

Question for Treasury

UIN 173981, tabled on 12 September 2018

To ask the Chancellor of the Exchequer, what estimate he has made of the (a) overall amount and (b) proportion of tax revenue raised from the contributions of businesses with a turnover of £1 million or less in terms of (i) employer national insurance contributions, (ii) corporation tax, (iii) value added tax and (iv) business rates.

Answered on

9 October 2018

It is not possible to identify tax revenue raised from the contributions of businesses with a turnover of £1 million or less as the necessary information on turnover is not readily available and could be provided only at disproportionate cost. HMRC does not collect business rates.

It is possible to identify tax liabilities for businesses with a turnover of £1 million or less for corporation tax and value added tax.

We estimate corporation tax liabilities for 2016-17 was £50 billion of which around £12 billion (24%) was contributed by companies with turnover of £1 million or less.

We estimate Home VAT liabilities for 2016-17 was £100 billion of which around £16 billion (16%) was contributed by companies with a turnover of £1 million or less.

The Ministry of Housing, Communities & Local Government statistics on national non-domestics rates are available using the following link below. Business rates collected is aggregated data by local authority and not by individual business size.

https://www.gov.uk/government/statistics/national-non-domestic-rates-collected-by-councils-in-england-forecast-for-2018-to-2019

Answered by

Treasury
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