UK government to pay more than £10m in VAT to Apple over iPhone subsidies

Apple has been slapped with a huge bill for subsidies it has paid to help cover its losses from the launch of the iPhone 7.

A parliamentary committee says it expects Apple to pay £10 million in VAT over its costs to subsidise its iPhone 7 sales.

The tax bill is estimated to amount to £7 billion.

The company is due to hand over details of the tax bill later this month.

The committee said it was expecting to receive the information on Tuesday.

Apple has not commented.

The UK government has agreed to a £1.3 billion tax bill in relation to the iPhone, which the government says is partly offset by an increase in other taxes.

Apple will also receive a £5 million rebate for any taxes it paid to the US and China.

The government will pay Apple £2 million over a five-year period to cover the tax costs.

Apple had previously said it expected to receive an initial payment of around £10.5 million.

It has since revised the figures down to around £9 million, after the government announced it would pay it £10 billion.

It said it would give details of its expected payment next week.

The Government has agreed a £15 billion tax deal with Apple to help it pay for the UK’s £50 billion Apple Watch, which has been delayed and is not expected to launch until the second half of 2020.

The bill is due on Monday, with details to be published on Tuesday morning.

The move has angered some Labour MPs.

Shadow Chancellor Angela Eagle said it “was a blatant subsidy to the American company”.

“This is yet another attempt by the Tories to steal the thunder of Jeremy Corbyn,” she said.

“If they’re so determined to take over the spotlight, then why is it now paying Apple a whopping £2 billion for this?”

Labour has also accused the Government of “losing the battle for the hearts and minds of the people of Britain”.

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