Apple’s UK tax bill surged last year as the American tech giant’s operating profits in Britain soared past £1 billion, fuelled by rising sales and the continued expansion of its local operations.
Newly filed accounts at Companies House show that Apple’s corporation tax contribution rose by nearly 62 per cent to £304 million for the year ending September 28, 2024, up from £188 million the previous year. This came as the company’s UK operating profit jumped from £822 million to £1.2 billion, while revenues increased by 35 per cent to £4.7 billion.
The strong performance was driven in part by the release of the iPhone 16 range, marketed for its improved battery life, as well as growth in services such as Apple Music and Apple TV, despite increasing competitive pressure and questions over Apple’s pace in artificial intelligence.
The iPhone maker’s tax affairs have long been a flashpoint in Europe. Last year, Apple lost a high-profile case with the European Union over €13 billion in unpaid taxes, which the EU claimed were owed to Ireland following what it described as illegal state aid. Apple, which has denied any wrongdoing, said it had “always paid all the taxes we owe wherever we operate” and accused the EU of retroactively changing the rules.
In the UK, Apple operates 40 retail stores and employs more than 7,700 people, with a significant footprint in London’s Battersea Power Station, as well as offices in Cambridge, Swindon and St Albans. Its UK operations also include television and film production facilities in Buckinghamshire and Hertfordshire.
Globally, Apple reported second-quarter revenue of $95.4 billion, exceeding analysts’ expectations despite rising geopolitical tensions and supply chain challenges. Chief executive Tim Cook has warned about the risks of relying too heavily on China for manufacturing, especially amid the US trade war, which Apple said could cost it up to $900 million.
Despite mounting competition and delays in AI deployment, Apple says it is doubling down on artificial intelligence. At its recent developer conference, senior executive Craig Federighi said the company was investing heavily in AI, with new features such as live call translation and enhanced spam call detection in the pipeline. Siri, Apple’s voice assistant, is also set for a significant upgrade after what Federighi described as a longer-than-expected development cycle.
While Apple’s AI efforts are still taking shape, its services division — which includes the App Store, Apple Music and Apple TV — continues to generate strong revenue, bringing in $23.9 billion globally in the second quarter. iPhones remained the backbone of the business with $45.96 billion in sales, alongside $7.91 billion from wearables and $7.45 billion from Mac laptops.
With Apple’s UK business continuing to grow and its tax contributions rising significantly, the company is likely to remain a key player in both the British tech economy and the wider public debate over corporate taxation in the digital age.
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Apple pays £304m in UK tax as profits soar past £1bn