According to London chartered accountants Perrys of the 294,000 businesses paying Corporation Tax in the capital small and medium enterprises combined make up approximately 99 per cent of the contributions to HMRC.

Stewart Pope, CEO at Perrys Chartered Accountants in Central London, said: “We estimate that small to medium businesses in the capital are paying an average annual corporation tax bill of £37,000 each, which is set to rise to £62,000 each by 2026.”

However, it is not all doom and gloom. Pope added: “The higher contributions also reflect the increase in profits that businesses are generating, which is a positive indication that the capital continues to remain a great place to do business.”

Last year the Chancellor announced a decrease in corporation tax rates from 20% to 18% by 2020, which will be a welcome relief for many SMEs.