Utilities pay the biggest chunk of company tax

Tim Wallace
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ENERGY and water firms saw their corporation tax bills jump in 2012, HMRC figures showed yesterday, as the utilities sector paid more into state coffers than any other.

Although the sector comes in for criticism for a perceived lack of contribution to wider society, it in fact paid £9.6bn in corporation tax 2011-12.

That is an increase of £400m on the tax paid in the previous financial year.

Overall corporation tax payments increased £100m to £42.2bn, despite the fall in the headline rate of the tax.

The main rate declined from 28 per cent in 2010 to 24 per cent in 2012, and 23 per cent in 2013. The aim is for the rate to fall to 20 per cent in the coming years.

The next biggest bill was levied on the business services sector, a group of industries from cleaning services to credit reporting and market research.

They paid £9.6bn, up £600m on the year.

And banks and finance firms were next, paying £5.2bn – down £1bn on the year as profits fell.

The sector also paid £1.6bn in the bank levy.