THE FINANCIAL services sector generated £63bn in tax receipts in the year to March, figures out today show.
The industry’s companies and staff paid 11.6 per cent of the country’s tax, while making up 3.8 per cent of the workforce.
The level of tax is flat on a year ago, though the percentage has fallen from 12.6 per cent.
This is due to a cut in corporation tax as well as reduced profits at several big companies, the study by PwC for the City of London Corporation shows.
The sector’s contribution remains below the £67.8bn it paid in 2007.
Banks stumped up £1.6bn for this year’s new bank levy, as the one-off bank bonus tax fell out of the figures.
Mark Boleat, chairman at the City of London Corporation, said the figures show the UK cannot take the industry for granted: “As Europe’s financial capital, it is vital that we engage in the ongoing banking union discussions and make a clear case for maintaining the integrity of the single market.”
Around £23.8bn of this year’s bill came from corporate taxes, with the remaining £39.2bn borne by customers and staff in levies such as VAT and national insurance.