21 September 2023
‘It’s clear to see that UK companies are in good health despite current headwinds, contributing more to the UK’s coffers than ever before.
‘UK corporation tax receipts totalled £84.7bn in the year to 31 March 2023 – a 26% rise on the previous year. The government has attributed this increase to a strong post-pandemic recovery in the UK economy, crediting the increase in companies’ trading profits.
‘There was a real jump in offshore corporation tax receipts, driven by high oil and gas prices, alongside the introduction of the Energy Profits Levy in May 2022, which in itself represented 3% of total corporation tax receipts.
‘The results show that UK companies are performing well. With the recent increase in the rate of corporation tax to 25%, if this continues, we expect to see corporation tax receipts rise even further.
‘However, businesses are continuing to feel the effects of the inflationary pressures and high interest rates, potentially dampening trading profits for 2024. How UK companies will be affected by these macro-economic headwinds is yet to be seen.
‘Of course, with the next big fiscal event being the Autumn Statement, businesses will be watching closely for any further changes that may impact future corporation tax receipts.’