Apple’s UK retail arm paid less than £800,000 tax last year after using an employee stock option scheme to reduce its tax bill.
// Apple stores in the UK paid less than £800,000 tax last year
// The tech firm’s UK retail business made pre-tax profits of £38.2m on sales of £971.5m
Apple’s UK retail arm paid less than £800,000 tax last year after using an employee stock option scheme to reduce its tax bill, according to a report in The Times.
The tech firm’s UK retail division Apple Retail UK reported pre-tax profits of £38.2 million on sales of £971.5 million in the 12-month period to 25 September 2021.
This marked a 29% increase on the previous year.
However, the latest financial reports also revealed that profits after tax were £37.4 million – indicating that the tech giant paid just £796,000 in tax for the full year.
Apple Retail UK was able to minimise its tax bill by £9.2 million after an increase in its share price saw it hand out a £30.3 million tax-deductible payout to employees.
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 (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.