Npower avoids paying £108m to HMRC

30 April 2013

Bitterwallet - new npower logo Those scamps at Npower are at it again, reportedly dodging £108 million in UK corporation tax, thanks to a nifty switcheroo involving sending cash to Malta.

According to the Currant Bun, over half of Npower's funding comes from German owner RWE via loans paid through a company based Malta. Npower then pays back annual interest on the loans, which means all manner of tax is avoided thanks to posting a loss. This comes on the back of the news that Npower hadn't paid any corporation tax for years because the government were making them make huge investments into wind farms (which just so happens to create a tax credit).

Of course, this is particularly galling for the 7 million customers who have been hit with price hikes in their bills for the past few years. Naturally, we have to point out that Npower are insistent that they've done "nothing wrong" and that HMRC was "aware of everything".

Last night npower said: "HMRC are aware of everything here and still class us as a low-risk company. It’s sad to see this continued harrying of a company like ours that has invested billions into the UK."

TOPICS:   Utilities   Tax

4 comments

  • Alexis
    "HMRC are aware of everything here and still class us as a low-risk company. It’s sad to see this continued harrying of a company like ours that has invested billions into the UK.” Reading between the lines, that's two fingers to the rest of us from nPower, HMRC and the Tories. Quelle surprise.
  • Terry K.
    Yet again... The government need to get rid of these loopholes and quick. I blame the system, not the ones who use it to their advantage.
  • tom
    I would like to really thank npower for investing billions on pounds of their own money and taking nothing in return. It really warms the cockles of my heart.
  • Kevin
    I think people seem to forget there is also European law to take into consideration. You only need to pay your taxes somewhere in the EU and you're all sorted. That it's where the tax is lowest is just sensible.

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