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UK corporation tax

ended 22. September 2022

This morning, HMRC published the latest corporation tax data for the most recent financial year. It showed total CT receipts increased by 28% - to £67bn - in financial year 2021 to 2022 following the fall in receipts in 2020-21. This was largely driven by a strong recovery in the economy and company profits following the COVID-19 pandemic. If you've got any thoughts on this, send them across. Also, what will the impact of Liz Truss's proposed corporation tax cut be on business and next year's number? 

3 responses from the Newspage community

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Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
This increase was expected from the low base of the Covid year, but I wouldn't expect this rate to continue. The headwinds of higher inflation, rising rates and a low wage economy is putting significant pressure on the economy and even with reduced rates, businesses will struggle to stay afloat let alone make significant profits.
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Debbie Porter
Managing Director at Destination Digital Marketing
The latest Corporation Tax figures reported will largely be results from business done before the Corporation Tax rise announcement was put into play earlier this year. Liz Truss’ proposal to cut this tax back again would be a welcome relief for small businesses everywhere who are struggling to make ends meet. The impact won’t be seen in next year’s figures though. We are still operating for this financial year under the threat of Rishi Sunak’s rise in CT, the impact of which will be seen in next year’s results, coupled with the impact of the economic downturn we’ve seen in 2022. So I expect we’ll see a big drop regardless of what’s happening with CT. If Truss abandons a rise to 25% next year it will, however, create more buoyancy and confidence in the business community which would be the economic prop we need.
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Marcus Wright
Managing Director at Bolton Business Finance
The latest corporation tax receipts data put into perspective the huge sums this Government is proposing to spend capping energy. The support to businesses alone is expected to cost £25bn versus the last tax year's corporation tax receipts of £67 billion, that's 37% of the tax on profits. Furlough also cost £70 billion, so I am afraid I agree with Rishi Sunak that we simply cannot afford this level of borrowing.