UK Pubs Are Paying Too Much Tax
November 24, 2015 Taxation in UK
LONDON – Pubs in the UK pay the second highest total rate of tax in the UK compared to all other industries, and pay six times as much for their business rates then they should.
In a new report released this week the British Beer and Pub Association (BBPA) claimed that British pubs pay one of the highest tax burdens of any industry in the country.
In total, pubs in Britain cumulatively paid GBP 7.3 billion in taxes, or approximately GBP 140 000 each, a level equivalent to approximately 34 percent of their annual turnover.
The majority of the tax burden faced by British pubs was attributed to VAT, excise duties, and business rates.
It was also noted that the business rates are set based on the expected turnover of pubs, however the expectations are set by tax authorities at the levels of activity seen in 2008, and as pubs have seen their levels of business decrease over the last 7 years, the business rates are now not aligned with the actual activity experienced by most businesses, leaving the, to pay business rates approximately 6 times higher than they realistically should.
The levels of the tax burden faced by pubs is the second highest of any industry in the UK.
The BBPA has now called on the government to provide some tax relief to the over encumbered industry in order to ensure its survival over the long term.