Palantir Pays £2m in UK Corporation Tax in 2024

Palantir Technologies, the U.S.‑based software firm that has secured large public‑sector contracts in the United Kingdom, paid only £2 million in corporation tax in 2024. The figure is striking given the company’s £300 million‑plus deals with the NHS and the Ministry of Defence, which were completed under a framework of tax‑efficient structures that the firm argues are “global systems and accounting practices” that enable it to minimise tax liabilities.

The company’s tax arrangements, which have been described by its union representatives as a form of tax avoidance, rely on a combination of transfer‑pricing rules, intellectual‑property licensing, and offshore subsidiaries. These mechanisms have allowed Palantir to shift profits to jurisdictions with lower rates, a practice that critics say could diminish public revenue in the UK and elsewhere for years. While Palantir’s rapid expansion and AI‑driven services have attracted lucrative government contracts, the tax strategy has sparked debate about the fairness of the tax system for multinational technology firms.