Businesses paid a record £32 billion in corporation tax last year, up 8% on the £30 billion paid the previous year, according to Funding Options.
Figures from HMRC show that corporation tax receipts have increased every year over a 6 year period.
The record figure excludes firms in financial services and the oil and gas industry.
- corporation tax revenue from North Sea oil companies fell from £10.2 billion in 2008/09 to £2.5 billion in 2015, the lowest since early 2000s
- the size of the annual investment allowance is currently £200,000 per business per year, down from £500,000 in 2015.
The main rate of corporation tax has already been cut from 28% to 20% and is due to cut again to 17% in 2020.
Nigel Holland from Holland & Co Chartered Accountants said:.
“Reducing corporation tax rates will benefit businesses in the UK, especially small businesses, who are the key drivers in maintaining competitive economic growth. Therefore the government’s supportive stance in easing the tax burdens of businesses is very much welcomed.
At my firm we look into a number of strategies as to how businesses are able to reduce their tax burdens legally.