Tax Rebates & Refunds

Major water companies ‘not paying enough tax’

November 28, 2012
Posted in Income Tax — Written by Chris

A report in a national newspaper has suggested that some of the UK’s biggest water companies are not paying enough tax on their earnings. In some cases, companies are paying no tax at all whilst making profits and handing huge bonuses to executives.

The Observer reported that three of Britain’s largest water companies, Yorkshire Water, Anglian Water and Thames Water, paid little or no corporation tax on its profits last year. Whilst all the companies made millions in profits during the tax year, only Yorkshire Water paid any corporation tax to HMRC, however this payment was only in the low millions.

Thames Water, in particular, is under the spotlight, as last year the company gave chief executive Martin Baggs a £420,000 bonus (on top of his £425,000 salary) and received a tax rebate of £76 million. Despite this, many believe that the company is not paying its fair share of corporation tax.

Commenting on the issue was Simon Hughes, the deputy leader of the Liberal Democrats, who said:

“The government should use its powers of licensing to make sure the companies behave in a responsible way to their customers and to society, which includes paying their taxes.”

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