Sunday, 11 November 2012
George Osborne's firm made £30,000,000+ in "gross" profits over 3 years
On 18 October 2012, George Osborne updated his entry in the Register for Members' Interests (House of Commons). His entry is shown above but you can also view it in page 215 from this link (here). I thought readers would appreciate knowing what % of gross profit George's Osborne's family firm pay in tax each year and also what % total tax paid is as a turnover of revenue. You can explore the finances of "Osborne & Little Group" yourself from this link (here) but for my analysis see below.
Despite having a turnover of £71 million+ over the last three years and making gross profit of £30 million+ during the same period, Osborne and Little have paid less than 1% in Corporation Tax during that 1,000+ day period. For the last full financial period on record (ending April 2011), the company paid less than 0.1% in Corporation Tax as a proportion of £9.7 million in Gross Profits. This is not the same as net profits of course, and in no way should it be taken as such. The parent group "Osborne & Little Group limited" had an even bigger turnover of £100 million+ for 3 years and even greater gross profit of nearly £45 million, but the Corporation Tax they paid as a proportion of turnover or gross profit was even less (here). Of course, if you examine each of the three years you will see that after gross profit is calculated, the accountants proceed to deduct all of that sum in various liabilities including "miscellaneous" liabilities of £1.7 million+ for 2011 and a total of £5 million for the 3 year period. Other deductions before net profit is calculated include Director emoluments of £1.6 million per year, totaling £4.8 million for the three year period.