Legal and accountancy businesses generated £15.5bn in taxes last year

Legal and accountancy businesses and their employees generated £15.5 billion in taxes in 2016, according to a new report.

In total, 60,470 firms, including the Magic Circle law firms and Big Four accountants as well as small businesses and others employed 693,000 people in the UK in a variety of roles.

The figure amounts to almost one quarter of those employed in the two sectors in the EU, making the UK the largest employer, beating both Germany and France.

The report was compiled by PwC for TheCityUK.

Tax contribution from the section amounted to £6.4bn borne directly by companies and £9.1bn in related taxes.

Miles Celic, chief executive of TheCityUK, said: “This expertise isn’t just located in London. Right across the UK, centres of excellence, including Manchester, Bristol and Edinburgh, are adding value to the UK economy.”

He added: “These are also the areas we expect to see the most growth in the coming years as we move through Brexit and beyond.”

The study examined 15 of the largest firms, though they are not identified, and used that information in conjunction with other data to estimate salaries and taxes in the sector as a whole.