Shein is facing fresh scrutiny over its UK tax affairs after campaigners alleged the fast-fashion giant shifted the “vast bulk of income” to Singapore in order to minimise its British tax payments.
Accounts filed at Companies House show Shein Distribution UK generated sales of £2bn in 2024 but paid just £9.6m in corporation tax.
The bill reflects 25% of its £38.2m pre-tax profits — in line with the UK corporation tax rate — but critics argue the figure is low relative to the retailer’s UK revenues.
The Fair Tax Foundation claims the business transferred about 84% of its UK sales, worth £1.72bn, to its Singapore parent Roadget Business Pte Ltd as “purchasing costs”.
“Very little surplus is left in the UK to be subject to corporate income tax,” said Paul Monaghan, the foundation’s chief executive, likening Shein’s approach to the “worst excesses” of big tech tax structures.
Singapore’s corporate tax regime allows for rates as low as 5%, while Shein’s Singapore arm paid an average of 9.4% between 2021 and 2023, according to the foundation. The company’s ultimate owner is based in the Cayman Islands.
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The fast fashion giant rejected the accusations, calling them “preposterously wrong”.
A spokesperson said: “As is standard in international commerce, our UK business purchases products for resale from our principal at prices consistent with prevailing market conditions and arm’s length principles. This approach ensures our transactions are fair, reasonable, and in line with global practices.”
The retailer added: “That we operate in a low-margin, high-volume industry should be obvious to anyone who has done even minimal research on our sector. Shein complies with the relevant laws and regulations of each market we operate in. We pay all relevant taxes in UK, where applicable.”
The claims come as Shein faces wider controversy over its use of the UK’s de minimis rule, which allows overseas sellers to send goods worth under £135 directly to consumers without paying customs duty. Campaigners estimate the retailer could have faced as much as £200m in import charges without the exemption.
The government is reviewing the rule amid mounting pressure, after the US scrapped its own $800 threshold for Chinese-made goods earlier this year. HMRC data shows parcels from China worth £3bn accounted for over half of all low-value shipments to the UK in 2024.
Shein, once linked to a potential £50bn London Stock Exchange listing, is now expected to pursue a flotation in Hong Kong.
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