Sharp rise in corporation tax receipts

New research has revealed a sharp rise in the amount of corporation tax collected by HM Revenue & Customs (HMRC).

According to the latest figures, the tax authority collected £9.62 billion in corporation tax receipts in October – representative of an 18.3 per cent year-on-year rise.

Experts have been keen to point out that the figures represent one of the highest year-on-year increases currently on record.

In January this year, however, corporation tax receipts were a little higher, hitting £9.74 billion – a 25 per cent increase on figures recorded in January 2016.

Experts have said that these significant increases in receipts suggest that progressive cuts in the rate of corporation tax in recent years have encouraged greater business activity across the UK.

However, concerns have been raised that it is still too early to tell how far reduced corporation tax rates have managed to encourage new international companies to start doing business in the UK.

Traditionally, October and January have long been thought of as ‘spike months’ for corporation tax – as a large number of UK companies will have a corporation tax payment deadline in either one or the other, a report in Business Money magazine suggests.