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

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.

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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.