Apple’s UK stores paid only £800k in tax
Apple’s retail division paid just £796,000 to HMRC in tax last year after making hefty payouts to employees through a stock option scheme.
The company’s UK retail arm, which spans 38 shops, made pre-tax profits of £38.2 million on sales of £971.5 million in the year to September 25. However, Apple minimised its tax bill by over £9m after an increase in the share price triggered a £30.3m share-based, tax-deductible payout to employees according to the Sunday Times.
As a result, the giant paid just £790,000 in tax for the year, despite an increase in sales across its UK store portfolio.
Richard Murphy, professor of accounting at Sheffield University’s management school, told The Times he believed that Apple had claimed the full available tax relief from the scheme, without properly accounting for all the related costs.
“We know the important role taxes play in society and always pay all that we owe everywhere we operate,” an Apple spokesperson commented.
“In addition to our tax payments, we are proud to be an engine of growth in the UK supporting more than 450,000 jobs across the country.”
Apple said it “always pays all that we owe everywhere we operate” and supports over 450,000 jobs in the UK.
Apple (UK), a subsidiary providing technical services to other parts of the Apple business, paid £7.1 million tax on profits of £50.7 million last year.
Apple Europe, a third subsidiary encompassing sales made online and through other retailers in the UK and across Europe, paid £102 million of tax on profits of £646 million.
The company extracted £559 million of dividends from its three UK-registered entities last year.
Email this article to a friend
You need to be logged in to use this feature.
Please log in here