Apple’s two UK divisions pay just £9m in UK corporation tax

Apple paid just £9million in UK tax last year, even as the tech giant weathered the pandemic to generate sales of over £1.1billion .

In recently filed accounts, the iPhone maker’s two UK subsidiaries – Apple Retail UK and Apple UK – recorded revenues of £1.1 billion and £372 million respectively in 2020.

Pre-tax profit for the divisions was £31m and £44m for the year ending September 29.

Yet Apple’s combined tax bill in the UK was just £9.2 million, still less than the previous year.

Apple, which has a market valuation of $2.4 trillion, is among a string of big tech companies to come under fire for lowering their UK tax bills by funneling profits through divisions in low-tax jurisdictions.

The G20 agreed to tax reforms presented by the OECD that will establish a new global minimum corporate tax rate and ensure that large multinational companies pay taxes in the countries in which they sell products or services.

An Apple spokesperson said, “At Apple, we respect and support the important role taxes play in economic growth and the well-being of nations.

“As the world’s largest taxpayer, we pay all taxes due in accordance with the laws and regulations of each country wherever we operate in the world. We have also been open about our strong support for the OECD’s development of a new inclusive tax framework.

The filings showed the impact of the pandemic on Apple as Covid lockdowns forced the company to close stores.

Apple’s UK retail sales fell 20% from £1.4bn the previous year, while pre-tax profit fell from £39m to £31m.

Meanwhile, Apple UK, which provides services such as research and development, said operating costs rose 26 per cent to £330m due to “increased business by the company”.

Accounts filed for Apple Europe, which is also registered in the UK, showed a 15% rise in revenue to £810m, while pre-tax profit rose from £443m to £526m. pound sterling.

Across all three divisions, revenue fell 3% to £2.2bn, while total operating profit rose 16% to £592m.

Apple said its combined tax payments fell from £91million to £97million the previous year.