FAQs

What’s a Tax Tick?
It’s a logo that companies would display on their products and advertising to show their customers and investors that they pay their full share of UK tax and do not use schemes designed to avoid tax.

What’s in it for me as a consumer?
By supporting companies that pay taxes responsibly, you could make sure that more of the money you spend ends up being used for the public good, including the NHS and education. And at a time when companies are desperate for customers, it could even influence companies to abandon their tax avoidance schemes.

Why should I be bothered about corporate tax avoidance?
Abuse of tax avoidance and tax deferral schemes means that billions of pounds each year that should be available to spend on useful social objectives, including the NHS and education, is instead retained by companies. An extensive study showed that this shortfall is in the region of £12 billion a year.

How do companies avoid paying full corporate taxes?
Tax avoidance often involves setting up parts of the company in offshore tax havens with lower (or no) tax obligations. In fact, 29% of large UK companies are considering moving their corporate tax base to a cheaper tax regime. Many companies also ‘defer’ some of their tax obligations indefinitely without penalty – and in fact, tens of billions of pounds of corporate tax has been deferred with no certainty that it will ever be paid.

Could the UK corporate tax rate be too high?
The maximum tax on UK company profits is now 28% (compared to 33.3% in France and 35% in the USA). Many companies have no difficulty in paying this, but many more profitable companies end up paying less.

But isn't tax avoidance legal?
There are many tax loopholes designed to encourage business investment or to prevent unfair taxation in particular circumstances. However, the tax avoidance industry exploits these loopholes in ever more complicated ways with the single aim of reducing their clients' tax bills. Technically this is legal. But the Tax Tick scheme would let you decide for yourself how fair it is.

But isn't it Government's job to deal with this stuff?
They keep trying, but the tax accountants are running rings around them. I think it's time to try a bottom-up, rather than a top-down, approach.

Are there any big UK companies that would qualify for the logo?
The Co-op is the gold standard, paying pretty much 100% of the headline rate. The Guardian also lists the following companies as being considered "low risk" by the tax authorities:

Schroders
Unilever
Aviva
Pennon Group (SW Water)
Lonmin, mining company
Tullow Oil
Senior, aerospace components
Premier Oil
Tullett Prebon, stockbrokers
Capita

Whether they would qualify for the TaxTicked logo, I can't yet say. But encouragingly, there's a fair number of consumer products in there.

Is this just a UK thing?
Tax avoidance and tax havens are a worldwide problem, keeping millions of people in poverty. If the Tax Tick logo could go global, it would have a real impact on the multinational tax avoiders. One step at a time, though.

Who's behind the Tax Tick concept?
I'm Alistair McKechnie, a regular taxpayer living in London. I've also had some very useful input from other people, particularly Richard Murphy of the Tax Justice Network.

How can I support the Tax Tick concept?
Email me to let me know what you think. And copy this website to family, friends, colleagues and clients. With a critical mass behind the idea, it'll fly.