HMRC consultants pay only 3.5% tax

13 January 2013

ONE of the world’s biggest consultancy firms, which also works for HM Revenue & Customs (HMRC), has avoided paying tens of millions of pounds in corporation tax.

Accenture reduced its tax bill last year to under 3.5% of its profits — less than a seventh of the standard rate. Its accounts disclose that it paid no UK corporation tax in the previous two years on more than £180m of profits.

The Sunday Times has established that Accenture is being audited by tax authorities in America over cross-border deals between its various subsidiaries, which can shift profits into tax havens or low tax countries.

This weekend Margaret Hodge, chairwoman of the public accounts committee, said she would question HMRC officials about why Accenture paid such a low rate of corporation tax. She said: “It is absolutely absurd if HM Revenue & Customs are doing businesses with companies that are not paying their