NEWS
The UK in recovery after the Covid-19 pandemic
Battered by Covid-19 the UK government is trying its best to protect its people. Throwing everything except for the kitchen sink at resolving this pandemic and it’s affect on our world and our Islands, much is being reported about where the funds will come from to pay for the various costs incurred to date. Like all good businesses in the private sector, your future success relies heavily on the support of your customers and this process is much the same for our politicians whom far from being handed cash by the electorate are being handed support via their X on the ballot paper. So keeping customers happy for business is the same as it is for politics. So where is the money coming from? The £623Bn or so that keeps this country or UK PLC on the rails is generated from various taxes collected by the Exchequer. The money is invariably generated by profitable organisations whom, add a small percentage to their cost prices to
create a fund that pays for their overhead costs and leaves a small amount called net profit from trading activities to invest in the future of their business.
Read Annual UK Corporation Tax Statistics September 2019
From these operations a number of taxes are stimulated. First there is the PAYE of £181Bn, employers and employees’ National Insurance of £131Bn collected from the pay awarded by companies to their employees. Next there is the VAT of £132Bn added to the sale of goods. These taxes are all administered locally by every business that provides goods and services and employs people on PAYE. If the company is an importer, then there are the taxes paid as duties on imports from around the world which may also soon apply to purchases from the EU. Finally,
24 / WELDING WORLD MAGAZINE - ISSUE 02 - APRIL 2021
there are the taxes paid in the form of rates to the local authority for simply hosting a business in their locality as the companies contribution, to providing local services. At the very end of all of these transactions are those profits made by the company to reinvest in the future which are then met with Corporation Tax of £54Bn in 2018/19.
Source for the values quoted can be found HERE
Value Spent by Government PAYE
National Insurance VAT
Corporation Tax TOTAL
£623 Bn £181 Bn £131 Bn £132 Bn £ 54 Bn £498 Bn
plus Import Duties Generated by the Business Community and Business Rates
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