Ain’t Ritchie just wonderful?

Corproration tax cuts have failed the UK

Hmm, how’s that then?

FTSE 100 companies paid tax equal to 23% of their profits last year, almost a quarter less than in 2010, according to figures from accountants UHY Hacker Young.

Leave aside the fact that not all FTSE100 companies are UK resident and so not all pay UK corporation tax. And also leave aside that some 70% of the revenues of the FTSE100 come from outside the UK meaning that the UK corporation tax rate is at best only a minor influence on their total tax bills.

And just consider this. The large company rate for corporation tax is 21% (or at least was in the year under discussion). And Ritchie is complaining that they only paid 23%?

That’s, err, one hell of a tax gap, isn’t it?

23 thoughts on “Ain’t Ritchie just wonderful?”

  1. It is also a somewhat strange argument to say that a reduction in the tax rate has failed because tax rates have been reduced.

  2. it’s also worth noting that the original report says that revenue is falling partly down to reductions in the tax rate, but mainly because of allowances and reduced profits.

    The Graun, for the financially illterate, usually puts allowances in scare quotes to make out that they’re some kind of spooky financial voodoo that only EvilBigCompanies can use

  3. Sam Jones

    Andrew Dickie is a staunch defender of the murder of 100 million across the communist world – standard stuff from him – a mouthpiece for evil – much like his ringmaster Murphy

  4. I’ve just spotted this on Murphy’s blog (same post that Sam Jones links to):

    “for 320 years the Bank of England and almost all economists got banking the wrong way round but I was one of those who did not”

    Humble isn’t he?

  5. Sam

    The thread illustrates the descent into tin foil hat territory of TRUK – the sooner we can implement the Socialist tax for this lot or offer them assisted emigration to Venezuela, Zimbabwe or North Korea the better off we will be

  6. Rob

    Truly if he turned out to have been the man who shot JFK it would not surprise me – his total lack of humility is truly awesome to behold – what an absolute blowhard….

  7. Andrew Dickie has descended into Monty Python territory and Murphy is already a grotesque of the order of Mr Creosote. One can only hope that he one day will similarly explode into a ball of putrid pus. His face already shows signs of breakout.

  8. I don’t usually read his blog, in fact I haven’t been there for years. It’s quite an achievement on his part to find it is much, much worse than the impression I got from commenters on here. It reads like some of those old weird user groups of deranged crazies you used to see.

  9. “21% corptax means 21% of profits paid in taxes” I could understand, if tortological, but “21% corptax means 23% of profits paid in taxes wah wah wah” is bizaare.

  10. Rob

    It is definitely reminiscent of the comments sections on Infowars or David Icke – a crazed collection of conspiracy theorists…..

  11. You chaps all claim he is stupid, which I’ll grant you is true, but also a “lunatic”, presumably as a suitable insult. But I’m beginning to wonder whether he is indeed demented.

  12. Somehow I doubt the figures. Government statistics show that the total take from corporation tax, bank levy and PRT has been pretty stable at £9-10bn from 2008-9 and there is no easy way of finding out how much CT the FTSE100 would have paid, because it is not disclosed anywhere in the accounts – and of course because of all the double tax relief they would claim from their overseas activities. Even if it could be found out, it would be meaningless because of that fact.

  13. Given that PwC audit about 40% of the FTSE100, this is probably more reliable research – it also includes business rates and NIC.

  14. Bloke not in Cymru

    If he’s going to claim they were all wrong for 320 years then I wonder if he’s including such intellectual lightweights such as Isaac Newton who was master of the Royal mint for a number of years, though admittedly that was after his what would now be called an ‘episode’ where he became
    Interested in alchemy and finding secret codes in the bible.

  15. @ diogenes
    The accounts of FTSE 100 companies show (or should) the charge to Corporation Tax on profits for the year split between current and deferred tax and how the tax charge differs from a simple (CT rate x pre-tax profits) – the charge to current tax should be roughly equal to the tax paid.
    The total tax paid in the year will be in the cash flow statement. Murphy habitually compares tax paid during the year on profits in the previous year with profits for the current year so his figures are nonsense but a little homework could get a reasonable estimate of (i) tax paid and (ii) CT payable on profits for the year.

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