Google pays £6m UK tax on £395m turnover

Google pays £6m UK tax on £395m turnover

The search giant only paid £935,000 of tax on £239m revenues last year

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Google’s UK business paid just £6.09 million, or 1.5 percent, of tax in 2011 on turnover of £395 million, which although is an increase on last year, is again likely to draw attention to its tax practices.

The search giant reported overall losses of £24.1 million in the UK, where it set aside a £51.4 million charge for share awards to its employees.

It was revealed last year that Google’s UK practice had paid just £935,000, or 0.4 percent, of tax on revenues of £239 million.

In the six years leading up to the end of 2010, Google paid a total of £8 million of corporation tax in the UK.

A Google spokesperson told Computerworld UK that its tax practices are completely in line with UK laws.

She said: “We make a substantial contribution to the UK economy through local, payroll and corporate taxes.

“We also employ over a thousand people, help hundreds of thousands of businesses to grow online and invest millions supporting new tech businesses in East London. We comply with all the tax rules in the UK.”

Chancellor George Osborne recently opened a new Google Campus in London’s Tech City, which is the largest purpose-built space for start-ups in Europe.

Osborne met with executive chairman of Google, Eric Schmidt, two years ago to inform him of the Tech City initiative, and the campus is being touted as the first example of the government’s relationship with the internet giant.



  • Cole You dont pay corporation tax on SALES you pay it on PROFIT so you wouldnt expect Google to pay much on these results Theres another issue as to whether Google actually hide some of their UK activities in Ireland or elsewhere but thats a different questionAnd you dont normally express the tax as a proportion of sales but of profits
  • twilp This is truly bad news I am a big fan of Google products but their business methods are really appalling Last night I was thinking that the time has come to start boycotting them but guess what Their mail docs diary and browser are all integral to my computer usageWhat on earth happens to successful companies Why do they all become robber-baronsDoes anyone have any suggestions of how I can either migrate away from Google or help pressurise them into changing their game I dont want to use Windows and have successfully avoided them since Ubuntu linux came along
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