Google reveals latest UK tax bill

Google reveals latest UK tax bill

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Google reveals latest UK tax bill

  • 31 March 2017
  • From the section Business
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Google was charged £36.4m in UK corporation tax last year, according to its annual results.

The US search giant recorded sales of £1.03bn and a pre-tax profit of £149m in the UK for the 12 months to the end of June 2016.

Google and other major tech firms have come under pressure over their tax arrangements.

The firm paid about £25m in UK tax last year, but said it expected to make a further payment of about £12m.

Google’s accounts also showed it hired an extra 600 workers to take its UK workforce to nearly 3,000 last year.

A Google spokesman said: “As an international business, we pay the majority of our taxes in our home country, as well as all the taxes due in the UK.

“We have recently announced significant new investment in the UK, including new offices in Kings Cross for 7,000 staff.”

£130m back taxes

Google agreed to pay £130m in back taxes to the UK last year, which was widely criticised as not being enough.

The sum covered money owed since 2005 and followed a six-year inquiry by Her Majesty’s Revenue and Customs.

George Osborne, who was chancellor at the time, described the deal as a “victory”, but Labour’s John McDonnell said the sums were “trivial”.

The agreement came after years of criticism of Google and other multinational firms over their tax arrangements in the UK and across Europe.

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