Square Mile paid a record £76bn to the taxman last year

The financial sector coughed up a record £75.6billion in tax last year, reiterating its importance to the UK economy.

That was 10 per cent of all tax receipts says the City of London Corporation and shows just how vital financial services remain. 

In total £34.1billion was paid by finance firms, while £41.5billion was collected from their staff and customers.

London’s financial sector coughed up a record £75.6bn in tax last year which according to the City of London Corporation the amount represents 10 per cent of all tax receipts

The figures for the financial year to March 2020 compared to £75.5billion for 2019. Despite the impact of the pandemic, the sector’s total tax contribution is expected to remain robust.

It is estimated that for the year ending March 2021 the sector will pay £75.7billion tax. 

The Corporation says the sector has been less affected by decreases in economic activity or hours worked as employees worked from home.

Catherine McGuinness, Corporation policy chairman, said: ‘While the pace and path of the recovery post-pandemic might be uncertain, the financial services sector’s contribution provides a much-needed element of stability.’

The figures come as Britain prepares to draw up a financial services sector agreement with the European Union.