Google is facing fresh questions over its tax affairs after campaigners claimed the firm has “missing billions.” The Fair Tax Foundation has criticised Google, part of the £3.2trillion goliath Alphabet, for not making public just how much money it makes in the UK.
Newly released accounts for the firm’s UK arm show its turnover rose by £212million to £3.1billion last year. Profits jumped from £549.6million to £654.1million, on which it paid £210.5million worth of corporation tax.
However, that forms only part of Google's operations in the UK, and relates to marketing and research and development work provided to other parts of Alphabet's business empire.
What Google doesn't disclose
What Google doesn't disclose is the vast amounts it rakes in from advertising. However, a previous report from the Competition and Markets Authority suggested it was anything from £10billion to as much as £20billion in 2024.
The Fair Tax Foundation says it raises fresh questions about what happens to the rest of the vast sums. It claims the bulk flows to Google’s subsidiary in Ireland, which has a corporation tax of 15%, compared with the UK’s 25%. The group estimates that, were all Google's UK activities to be booked here, its tax bill could be up to five times more.
Other tech companies, including Amazon, have also been accused of using clever accounting to reduce their tax bill.
Calls for transparency
The latest claim comes as Chancellor John Healey prepares to deliver his Budget at the end of October against a backdrop of threadbare finances that could lead to tax hikes and a further squeeze on spending.
Paul Monaghan, chief executive of the Fair Tax Foundation, said: “Britain could be missing out on £500million to £1billion in tax a year due to Google’s tax dodging. That’s money that could be paying for nurses, teachers and police.”
Monaghan said there were calls from within the tech firms themselves for a root and branch review of how much tax the industry pays. “The UK can, and should, take a lead – beginning with full public disclosure on exactly how much money multinationals such as Alphabet are making in the UK,” he said.
Google's UK operations
Google's UK head office is in London's King's Cross. The hi-tech offices are in the final stages of completion and can house 7,000 employees. The accounts showed Google's UK workforce stood at just over that at the end of 2025. Its wage bill was £274million, equating to almost £40,000 per employee. However, the documents also reveal that staff enjoyed £1.46billion worth of share-based payments.
A Google spokesperson said: “Over the past decade, Google's global Effective Tax Rate has consistently been around 20%, and we pay all taxes due in the UK and everywhere we operate.
“Google continues to invest in the UK, including through our £5billion investment, our new Waltham Cross data centre and King’s Cross office. These investments, and Google products like Gemini, Search, Cloud and YouTube which support £140billion of economic activity, are helping the UK develop its AI economy, unlock AI breakthroughs and create new opportunities for millions of Brits.”
Among the potential risks to Google's UK business, listed in the accounts, are “serious harm” from a drop in advertising, showing how important it is to the company. It also warned of the danger posed by new laws that could bring “new regulatory costs and challenges.”
