The amount of Corporation Tax HM Revenue & Customs collects from UK companies has risen 25% to £4bn, a sharp rise of £800 Million from the previous year.

In increase in HMRC activities toward preventing tax avoidance by large businesses and multinationals has led to the significant increase.

Promoting the UK’s attractiveness to business by cutting the country’s corporation tax rate has become an increasingly popular fiscal policy by the Coalition Government. Corporation Tax currently stands at 21%, and is set to drop to 20% in the new financial year.

A more aggressive approach from the taxman, coupled with this new policy has replaced a working relationship based on regular meetings between the HMRC’s customer relationship managers and companies’ heads of tax with visits by larger teams of inspectors. Those inspectors now seek to interview the chief financial officers, and even non-executive directors of said companies.