Translating tax


This booklet is intended to be accessible to non-tax specialists. It is necessary, at times, to use language and phrases that can be technical in their nature. Therefore to help the reader understand the concepts, explanations for the main terms are given.


How SSE demonstrates its tax contribution Total tax contribution


This is simply the total amount of taxes that SSE has some responsibility for. It is the sum total of all the taxes paid and the taxes collected by SSE.


Tax paid


These are the taxes that SSE pays directly to tax authorities. They are direct costs of running SSE’s business and include profit taxes, business rates and employer National Insurance contributions.


Tax collected


These are taxes which are generated by SSE’s operations, but are not a direct cost. SSE’s business activities create the commercial activity that give rise to these taxes and then it collects and administers them on behalf of governments.


Significant taxes that impact SSE


Environmental taxes


Profit taxes


Environmental taxes encourage businesses to operate in a more environmentally friendly manner. There are a number of different environmental taxes and schemes for different types and sizes of business.


Profit taxes are taxes on the profit a company makes. Corporation tax is just one way that governments can tax profits. In the UK, SSE’s profits are also subject to a Petroleum Revenue Tax which is paid on upstream oil and gas extraction activities.


Property taxes


Property taxes relate to owning or using properties and infrastructure. These include business rates, cumulo rates, and taxes on transactions when properties are bought and sold.


People taxes


Value Added Tax (VAT)


People taxes are taxes companies pay on wages earned of their employees and collect from employee wages on behalf of governments, for example income tax and National Insurance contributions.


VAT is a tax charged on goods and services, which are either bought from suppliers, or sold to customers. VAT is both collected on behalf of, and paid to, the tax authorities.


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