Palantir paid just £2m corporation tax in UK in 2024 despite lucrative public sector contracts

Palantir, a software company, paid a mere £2 million in corporation tax in the United Kingdom in 2024, despite securing high-value public sector contracts worth hundreds of millions. The US-based company, which employs AI technology to secure contracts with the NHS and Ministry of Defence, is experiencing rapid growth. Palantir's shares surged by 17% in early trading on Tuesday following CEO Alex Karp's forecast of nearly doubling worldwide revenues to $8 billion, a figure described as "otherworldly."

However, the company's effective tax rate stands at an astonishingly low 1.4% globally, according to a report by the Centre for International Corporate Tax Accountability and Research (Cictar). In the United States, Palantir paid no federal taxes in 2023 and only slightly over $2.5 million in state taxes. Andrea Egan, general secretary of the trade union Unison, which commissioned the report, criticized the tax practices, stating that corporations raking in billions of profits should not be allowed to pay such a low amount in taxes.

The company's UK operations generated £247 million in revenue for 2024, and the majority of its non-US workforce, approximately 750 employees, is based in Britain. Palantir holds an estimated £670 million in government contracts as of 2026, including a £240 million deal with the Ministry of Defence awarded last December without a competitive tender.

The company paid £2.1 million in UK corporation tax in 2024, despite declaring profits over £25 million, which translates to an effective tax rate of just over 8%. Researchers found that the UK corporation tax rate remained at 25% that year. One reason for the low UK tax collection is Palantir's accounting practices, which shift revenues and profits from European contracts to its US parent company to take advantage of massive tax shelters.