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Accountancy is playing its part
11 January 2019
The accountancy profession is playing a crucial role in UK PLC, according to a new report from CCAB. It claims “the collection, analysis, and reporting of financial information underpins business decision-making and administration at all levels; and professionals who are proficient in this ‘language of business’ are a necessary ingredient of economic activity.”
An estimated 613,000 individuals in the UK were working in accountancy roles in 2017. Some 432,000 of these were in-house accountants, another 181,000 worked as accounting professionals in specialist accounting practices. In addition to this, the industry employed another 199,400 other staff members in non-accounting roles.
With a combined workforce of 812,400 it’s no surprise that the accountancy profession had a big impact on the UK economy.
The profession contributed £59 billion to GDP, making up 3.2 per cent of GDP. Which was made up from £21 billion directly from the industry itself, with a further £38 billion was generated through in-house accountants in other industries.
Not only did the industry contribute 3.2 per cent towards GDP, but accounting also generated roughly £8.9 billion in tax revenues, making up 1.5 per cent of all HMRC receipts in 2017. That’s the equivalent of £1 in every £67 of Government revenue. This was made up from income taxes and National Insurance from employees; as well as business rates, VAT and corporation taxes from companies.
In addition to the revenue produced in the UK, the accounting industry also exported £3.1 billion of services in 2017, which amounted to 11 per cent of all professional services exports in the year. These exports were five times more valuable than the accounting imports of the year, demonstrating the global appeal of the UK’s standards and accounting services.
Meanwhile, in Ireland, the accountancy profession employed 61,200 people, meaning 1 in 33 jobs throughout Ireland were in the accountancy industry.
This figure was made up of 37,900 in-house accountants and 23,300 employees in specialist accounting practices.
The industry managed to contribute €12.9 billion to Ireland’s GDP, making up 4.4% of the entire country’s economy.
The Irish accounting industry also brought in €1.3 billion in tax revenue, with €1.2 billion of that figure being gained from income tax, PRSI and USC. The remaining €100,000 was acquired through corporate taxes.
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