Despite three years of price hikes, Npower pays no tax

17 April 2013

npower In a time when people have been spectacularly broke, Npower have been one of the energy companies that have been making a handsome profit.

What is their secret? Is it because they keep putting their prices up and rinsing everyone? In part, yes. However, they've got another good business tip - don't pay any tax.

That's rising profits of around £390 million, and no tax to pay! They're laughing all the way to the bank while you try and warm yourself around a cigarette. Of course, Starbucks and Amazon were hugely chided by sections of the public for their lack of tax paying, but Npower are much quicker to defend themselves.

The company’s chief executive, Paul Massara, said they don't have to pay corporation tax in 2009, 2010 or 2011 because it has got relief for investing in wind farms and power plants.

A spokesman for Npower said: "This is in no way tax avoidance, and all of our business is taxable in the UK. We've not paid corporation tax because we've been investing hundreds of millions to keep the UK's lights on." Hands up if you think their staff get taxed to buggery, therefore allowing those at the top to see their company as paying a fair amount of tax?

TOPICS:   Utilities   Tax


  • Pierre M.
    I don't see the issue, if they tax breaks for making investments then so be it.
  • Hello
    So whats the problem, according to many, your bosses don't pay uk tax either Mof, how about a feature on that?
  • wot i.
    They should have been putting profits back into infrastructure already as any normal company will need to do. Not blackmail the government to force their customers to pay extra above their profit margin. And remember all the "green" incentives we are forced to pay on top that the government shovels back to them as subsidies to make the useless windmills look useful. They and the government
  • Kevin
    They do put money back into infrastructure, just wouldn't it be better to do with with renewables rather than more traditional fossil fuels or nuclear? So incentivising them isn't a bad thing. And if a company doesn't want to offer a service (eg enough electricity) they don't have to so it's lucky that they want to keep generating electricity here. These companies pay all the tax they legally have to. It's not as much as people think it should be but that is a totally seperate issue. You do also know they are not a UK company don't you?
  • Ass B.
    @kevin They hold the government to ransom, refusing to invest unless we give them massive amounts of money. Few other companies are in such a position. Don't give them the tax reliefs and they will have to decide whether to invest in their own future, or wind down electricity production and all the profit that comes with it.
  • Haggis
    I need to invest in my small business. Can I get a tax break if I spend a few grand refitting my home office? Thought not. Cunts.
  • Captain W.
    @Haggis Yes, but you need to become an MP first
  • Alexis
    @the above er, yes you can
  • Haggis
    @Alexis It can be written of as an expense (to a degree). Unlike Npower I won't then get further relief on my taxable profit. Do keep up.
  • Realist T.
    "spectacularly broke" ? I beg to differ! People are on average hardly even remotly skint. Stop making the world sound worse than it is - look out the window, checkout the shops, checkout the financial figures....people are spending, most have a car, food, house, holidays.....this aint 'broke' in the slightest. As for NPower....I think we need a rule change - you are blaming the wrong people, they are playing by the rules -you just dislike the rules! As for investments....well these are the rules of the land, invest, get tax relief. Speak with your politician, and try to get the rules changed (not a hope in hell by the way) if you strongly dissagree....or blog and get nothing done?

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