UK lost out on £2bn in tax in 2021 as big tech shifted profits abroad, claim campaigners

TaxWatch estimated how much UK tax these global tech groups would have paid if their British subsidiaries declared profits at the same rate as they declare them worldwide. Photograph: AP

The UK might have missed out on as much as £2bn in tax in 2021 from big tech companies shifting their profits elsewhere, according to an estimate by a group campaigning for greater tax transparency.

Seven of the biggest US-headquartered tech companies, including Apple, Microsoft and Google owner Alphabet, are estimated to have paid £750m in UK corporation tax and the digital sales tax, compared with £2.8bn in estimated tax due had profits not been routed elsewhere, according to TaxWatch, a campaign group.