Apples UK Tax Contributions Soar as Profits Exceed £1 Billion Pounds

The American technology giant Apple has witnessed a substantial increase in its UK tax contributions as operating profits surpassed the £1 billion threshold. The corporation’s tax payments to HM Treasury rose dramatically by 62 per cent, reaching £304 million from £188 million for the financial year ending September 28, 2024.

The impressive financial performance saw operating profits climb to £1.2 billion from £822 million, while revenues surged by 35 per cent to £4.7 billion. These remarkable results coincided with the launch of the iPhone 16 range, though the company faced criticism for lagging behind its Silicon Valley competitors in artificial intelligence development.

The tax situation remains a contentious issue for Apple, particularly following its defeat in a landmark European Union case last year. The ruling required Apple to pay Ireland €13 billion in unpaid taxes, concluding an eight-year dispute over profits generated by Irish-based subsidiaries.

Apple maintains a significant presence in the UK with 40 retail stores and employs over 7,700 people. The company’s British operations include product development facilities in Battersea, London, with additional offices in St Albans, Swindon, and Cambridge. The tech giant also produces content for Apple TV at studios across Buckinghamshire and Hertfordshire.

Global quarterly results exceeded analysts’ expectations, with sales reaching $95.4 billion for the second quarter ending March 29. However, the company faces challenges, including a $900 million cost impact from ongoing trade tensions and mounting pressure in its streaming division.

The technology behemoth addressed concerns about its AI development during its recent global conference, with senior executives acknowledging delays in Siri upgrades while emphasising ongoing investments in artificial intelligence features such as call screening and live translation services.