Google’s UK tax bill

Google was charged £36.4m in UK corporation tax last year. The Search engine giant recorded sales of £1.03bn and a pre-tax profit of £149, in the UK for the 12 months to the end of June 2016 according to its latest accounts.

Google also revealed that they have hired an extra 600 workers to take its UK workforce to 3000 last year.

But the latest accounts filed in the US by Alphabet, show UK sales in excess of £6bn, as it treats the UK business as development and marketing service operation. Sales are booked in Ireland where the tax rate is lower.

“As an International business, we pay our taxes in our home country, as well as all the taxes due in the UK, and have significant new investment in the UK, with office in King Cross employing 7000 staff”, according to a Google spokesman.

Google agreed to pay £130m in back taxes owed since 2005, to the UK, after a six-year inquiry by Her Majesty’s Revenue and Customs (HMRC).