The estimated total tax contribution for the financial and related professional services industry was £110.2bn in 2023 (equivalent to 12.3% of total UK tax receipts), according to the first report of its kind for the sector, reports TheCityUK which represents UK-based financial sector organisations.
The report also highlights the sector’s UK corporation tax contribution – £18.4bn, representing 22% of total corporation tax receipts in the year to March 2023.
The research, carried out by PwC on behalf of TheCityUK and the City of London Corporation, found that employment taxes were the largest component of the total – representing 50% of the total contribution figure. While employment taxes are mostly incurred by the employee rather than the employer, the report acknowledges the particular significance for the sector where jobs tend to be higher paid than average, with average tax paid per employee of £30,500 compared to the estimated national average of £11,866.
Taxes borne (e.g. corporation tax and employer taxes) were £48.3bn, while taxes collected (e.g. employee taxes and VAT) were £61.8bn.
The report concludes that ‘by calculating the industry’s contribution to the exchequer, it is possible to demonstrate its value to the broader UK economy and provide crucial evidence to help shape policy’.
The estimated total tax contribution for the financial and related professional services industry was £110.2bn in 2023 (equivalent to 12.3% of total UK tax receipts), according to the first report of its kind for the sector, reports TheCityUK which represents UK-based financial sector organisations.
The report also highlights the sector’s UK corporation tax contribution – £18.4bn, representing 22% of total corporation tax receipts in the year to March 2023.
The research, carried out by PwC on behalf of TheCityUK and the City of London Corporation, found that employment taxes were the largest component of the total – representing 50% of the total contribution figure. While employment taxes are mostly incurred by the employee rather than the employer, the report acknowledges the particular significance for the sector where jobs tend to be higher paid than average, with average tax paid per employee of £30,500 compared to the estimated national average of £11,866.
Taxes borne (e.g. corporation tax and employer taxes) were £48.3bn, while taxes collected (e.g. employee taxes and VAT) were £61.8bn.
The report concludes that ‘by calculating the industry’s contribution to the exchequer, it is possible to demonstrate its value to the broader UK economy and provide crucial evidence to help shape policy’.
