Google pays just £6m in tax on £395m UK revenue

The internet giant becomes the latest tech firm to raise questions about the tax it pays in the UK

Google has agreed with the UK government to pay just £6m in corporation tax this year, despite earning almost £400m in revenues.

The Daily Telegraph revealed the sum after the Silicon Valley giant filed its accounts for its UK division at Companies House yesterday, which showed revenues of £395m.

The British side of the US firm is set to announce losses of £24.1m, but the newspaper claimed this figure was down to giving over £50m of shares to its own employees. When this figure is excluded, the reported profit for UK operations alone in 2012 stood at £27m.

Google has paid what seems a small figure for a number of years to the UK government, with just a £935,000 tax bill on £239m revenues last year and a total of £8m between 2004 and 2010.

Yet the firm continues to say it is sticking to the rules when it comes to UK taxes.

“We comply with all the tax rules in the UK,” said a spokesman from Google. “We make a big contribution to the UK economy by employing over a thousand people, helping hundreds of thousands of businesses to grow online and investing millions supporting new tech businesses in East London.”

Google reported its latest global results back in July, touting a 35% year-on-year to bring revenues to $12.21bn.

Vodafone’s tax bill came under scrutiny earlier this year when it was revealed it only paid £1.25bn to the government. Critics claimed it owed more than £6bn and that it had avoided paying by having a one-man staff in a tax haven office based out of Luxembourg.

However, the mobile company’s bill was deemed “reasonable” by the National Audit Office (NAO) in June, despite being almost £5bn less than expected.

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