UK Business: Activity, size and location: 2013

• The number of VAT and/or PAYE businesses is estimated to have risen by 18,000 (0.9%) between March 2012 and March 2013

• Companies and public corporations represent 64% of total businesses

• The largest industry group is professional, scientific and technical with 16.9% of all registered businesses

• London has the largest number of VAT and/or PAYE based businesses, with 17.2% of the UK total

• The number of businesses rose over the last couple of years, following a decline since 2008

There were 2.17 million enterprises registered for VAT and/or PAYE in March 2013, compared with 2.15 million in March 2012, a rise of around 18,000 (0.9%).

Figure 1: Number of VAT and/or PAYE based enterprises, 2008-2013

Source: Office for National Statistics

Notes:

1. Approximately 31,000 of the change between 2011 and 2012 was caused by improvements to HMRC computer systems leading to previously excluded businesses being added to the IDBR

Between March 2012 and March 2013 there was a 5.2% reduction in the number of sole proprietors and partnerships, while corporate businesses increased by 4.4%.

Figure 2 shows the gradual increase in incorporation and the decline in sole proprietors and partnerships over the last five years.

• Corporate businesses (companies and public corporations) represented 64% of total enterprises, up 2.1 percentage points from the 61.9% seen in 2012

• Sole proprietors represented 20.7% of total enterprises, down 1.4 percentage points from 22.1% in 2012

• Partnerships represented 11.2% of total enterprises, down 0.7 percentage points from 11.9% in 2012

• General government and non-profit making bodies represented 4% of total enterprises, compared with 4.1% in 2012

In 2013 the professional, scientific and technical sector accounted for the largest number of businesses, with 16.9% of all enterprises registered, overtaking wholesale, retail and repair of motor vehicles, with 16.5% of all enterprises registered. The third largest sector was construction; however, this fell from 12.3% in 2012 to 11.9% in 2013.

The professional, scientific and technical sector had the largest growth between 2012 and 2013, an increase of 14,000 businesses. This was followed by the information and communication sector which increased by 7,000 businesses in 2013. Construction had the largest fall in businesses with a fall of 6,000.

London accounted for the largest number of businesses in March 2013, with 17.2% of the UK total. The region with the next largest share of businesses was the South East, at 15.7%.

Between 2012 and 2013 all regions except Northern Ireland and Wales saw an increase in the number of businesses with London and the South East experiencing the greatest increase of nearly 13,000 and 2,000 businesses respectively. London grew by 3.5% between 2012 and 2013 and this accounts for around two thirds of the growth in the UK. The number of businesses in Northern Ireland and Wales fell by 800 and 900 businesses respectively.

Local units are sites that belong to an enterprise. In March 2013 there were 2.63 million local units belonging to VAT and/or PAYE based enterprises, compared with 2.61 million in March 2012 a rise of nearly 15,000 (0.6%). Out of the 2.17 million VAT and/or PAYE enterprises, only 58,000 (2.7%) operate from more than one site. These operated a total 516,000 local units.