Google paid £36.4 million in tax on revenues of around £1 billion last year, according to its annual reports.

The company returned a pre-tax profit of £148 million for the year ending 30 June 2016, suggesting it paid a corporation tax rate of around 24 per cent.

However, the internet giant’s complex accounting structure has led critics to suggest it actually generates significantly more profit in the UK than it claims.

Last year, the company agreed a deal with Her Majesty’s Revenue and Customs (HMRC) that saw it register more of its sales in the UK.

Google says its UK offices, employing just under 3,000 people, are not big enough to count as a “permanent establishment” and that it therefore should pay the majority of its taxes elsewhere.

"As an international business, we pay the majority of our taxes in our home country, as well as all the taxes due in the UK”, a spokesperson said.

“We have recently announced significant new investment in the UK, including new offices in Kings Cross for 7,000 staff.”

In January 2015, Google finalised a deal with HMRC that saw it pay £130m in unpaid tax dating back ten years. George Osborne, the then Chancellor, hailed the agreement as a “major success” but was widely criticised for a deal that opponents said let Google get away with avoiding millions of pounds in tax.

First pictures of Google's new offices in King’s Cross Show all 7 1 /7 First pictures of Google's new offices in King’s Cross First pictures of Google's new offices in King’s Cross Google's new Kings Cross office On Monday June 20, around 800 software engineers will be the first of 2,500 Google employees to relocate in the brand new 371,000 square feet, 11 storeys office, designed by Allford Hall Monaghan Morris (AHMM). Tom Soar First pictures of Google's new offices in King’s Cross Google's new Kings Cross office The 11-storey office has been leased by Google from BNP Paribas Real Estate last year. Tom Soar First pictures of Google's new offices in King’s Cross Google's new Kings Cross office Andrei Popescu, one of Google’s UK Engineering Directors said: “The UK has an incredible amount of engineering talent and as our team grows and we have this incredible new working space, we’re looking for more talented programmers to join us in London." Tom Soar First pictures of Google's new offices in King’s Cross Google's new Kings Cross office The staff at 6 Pancras Square will work on some of Google's best-known products. Tom Soar First pictures of Google's new offices in King’s Cross Google's new Kings Cross office Google’s new office has been built with sustainability and healthy materials in mind. The project also pioneered the Healthy Materials Program, an initiative developed with the goal of eliminating harmful compounds from Google offices to create a healthier space with improved air quality. Tom Soar First pictures of Google's new offices in King’s Cross Google's new Kings Cross office The new facilities will also include a running track and sleeping pods. Tom Soar First pictures of Google's new offices in King’s Cross Google's new Kings Cross office Around 800 engineers will move in during the first phase and there will be a total capacity of 2,500 after the second phase is complete later this year. Tom Soar

Following publication of the latest accounts, opposition parties claimed Google is still not paying enough tax.

“It seems that the so called 'successful' tax deal with Google that George Osborne boasted about last year has meant that they are still not paying their fair share under his successor Philip Hammond,” said John McDonnell, Labour’s Shadow Chancellor.

“We urgently need clarity on HMRC’s relationship with Google and what reassurances have been provided to the company.

“It is a national disgrace that by paying just £36 million in tax Google could have an effective tax rate lower than many working families in our country. And it exposes the complacency at the heart of this Tory Government, which is allowing this to still continue despite last year’s scandal.”

Susan Cramer, the Liberal Democrats’ shadow chancellor, said Google’s tax arrangement was “utterly unfair”.

"It is appalling that Google are still getting away with paying such a paltry amount of their total revenue back in taxes”, she said.