Palantir paid just £2m corporation tax in UK in 2024 despite lucrative public sector contracts
Summary
Palantir, a US-based software company, paid only £2 million in UK corporation tax in 2024, despite having public sector contracts worth hundreds of millions of pounds. The company uses tax strategies that lower its tax payments globally and in the UK, where it earned over £25 million in profits but paid an effective tax rate of just over 8%, much lower than the 25% tax rate.Key Facts
- Palantir paid £2 million in UK corporation tax in 2024 while holding contracts worth hundreds of millions.
- The company’s global effective tax rate is about 1.4%, far below standard rates.
- In 2024, Palantir declared over £25 million in UK profits but paid only about 8% in tax.
- Palantir has large public sector contracts, including a £240 million deal with the UK Ministry of Defence awarded without a competitive tender.
- The UK is Palantir’s biggest market outside the US, with £247 million in revenue in 2024.
- Palantir shifts revenue from European countries to its US parent company using a method called transfer pricing to reduce tax obligations.
- The company employs about 750 people in the UK, its main non-US workforce.
- Palantir says it complies with tax laws in all the countries where it operates and disputes claims about misuse of transfer pricing.
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