UK Business: Activity, size and location: 2012

• The number of VAT and/or PAYE businesses is estimated to have risen by 37,000 (1.8 per cent) between March 2011 and March 2012

• Companies and public corporations represent 61.9 per cent of total businesses

• The largest industry group is wholesale and retail, with 16.8 per cent of all registered businesses

• London has the largest number of VAT and/or PAYE based businesses, with 16.7 per cent of the UK total. In comparison London has 15.6 per cent of UK employment

There were 2.15 million enterprises registered for VAT and/or PAYE in March 2012, compared with 2.08 million in March 2011, a rise of nearly 68,000 (3.3 per cent). 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. These businesses were registered before 2012, so distort the year on year change.

Chart 2: Number of VAT and/or PAYE based enterprises

![Chart 2: Number of VAT and/or PAYE based enterprises][1]

Source: Office for National Statistics

[1]: http://www.ons.gov.uk/ons/resources/graphsummary_tcm77-280947.png"Chart 2: Number of VAT and/or PAYE based enterprises"

• Between March 2011 and March 2012 there was a 2.5 per cent reduction in the number of sole proprietors and partnerships, while corporate businesses increased by 6.8 per cent

• Corporate businesses (companies and public corporations) represented 61.9 per cent of total enterprises, up 2.1 percentage points from the 59.8 per cent seen in 2011

• Sole proprietors represented 22.1 per cent of total enterprises, down 1.2 percentage points from 23.3 per cent in 2011

• Partnerships represented 11.9 per cent of total enterprises, down 0.9 percentage points from 12.7 per cent in 2011

• General government and non-profit making bodies represented 4.1 per cent of total enterprises, compared with 4.2 per cent in 2011

In 2012 the wholesale, retail & repair of motor vehicles sector accounted for the largest number of businesses, with 16.8 per cent of all enterprises registered. This was followed by professional, scientific & technical, with 16.4 per cent of all enterprises registered, and construction, with 12.3 per cent.

The professional, scientific and technical sector had the largest growth between 2011 and 2012, an increase of 22,000 businesses. This was followed by the information and communication sector which increased by 11,300 businesses in 2012.

London accounted for the largest number of businesses in March 2012, with 16.7 per cent of the UK total. The region with the next largest share of businesses was the South East, at 15.7 per cent.

Between 2011 and 2012 all regions except Northern Ireland saw an increase in the number of businesses with London and South East experiencing the greatest increase of 25,000 and 10,000 businesses respectively. The number of businesses in Northern Ireland fell by 500.

Local units are sites that belong to an enterprise. In March 2012 there were 2.61 million local units belonging to VAT and/or PAYE based enterprises, compared with 2.55 million in March 2011 a rise of nearly 63,000* (2.5 per cent). Out of the 2.15 million VAT and/or PAYE enterprises, only 57,000 (2.6 per cent) operate from more than one site. These operated a total 518,000 local units.