Hospitality Sector Faces Highest Effective Tax Rate in UK, Pays £62 Billion in Taxes in 2025/26
📈 In 2025/26, the hospitality and retail sectors in the UK paid £62 billion in taxes through business rates, employer National Insurance Contributions (NICs), VAT, and other taxes. The British Retail Consortium's analysis revealed that hospitality has the highest effective tax rate among 11 main economic sectors. This data highlights the significant tax burden on hospitality businesses for every £1 of pre-tax profit.
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