Commenting for the UK200Group, BKL tax partner David Whiscombe responds to a report in the Guardian that UK taxpayers are funding businesses to the tune of £93 billion a year, or £3,500 per household.
“Nearly half of this figure of £93 billion is accounted for by ‘corporate tax reliefs’ – that is, allowing businesses to keep a bit more of their own money.
“On that logic, any reduction in the rate of business tax amounts to ‘government funding’ for business. If I earn £100 and I pay £20 in tax, does that mean that the government have funded me to the extent of £80? I think not.”