TIMPSON DUO
Life & times of the model family firm
Our Graham with James and Sir John
THE boss of the Timpson shoe repair chain has slammed “immoral” Amazon over how little corporation tax the web giant pays.
James Timpson blasted multinationals that, as he puts it, use “clever stuff ” to slash their tax bill.
He said: “The argument from the Amazons and Starbucks of this world is, we pay all the tax we have to. Well, sleeping with my next door neighbour isn’t illegal but it’s immoral.
“This argument that they are playing by international rules – well you may be, but your business is hollow.”
He called for the taxman to reward firms that do not take on massive debts, and that take on ex-offenders and the long-term unemployed.
James, 48, took over running the family business from dad Sir John, 76, now chairman. It has more than 2,100 shops and, amid the high street crisis, is still opening stores
– more than 180 just last year.
As well as Timpson cobbler, key-cutting and watch repair stores, the group, which employs more than 4,700 people, also has photo chains Max Spielmann and Snappy Snaps, dry cleaners Johnsons and Jeeves of Belgravia, and the Barbershop chain. Business is going well, with annual sales of £278million and profits of £14million.
That is nothing next to Amazon, whose biggest UK arm employs more than 22,000 people, and had a £2.3billion turnover last year. But while the Timpson Group paid £3.8million in corporation tax, Amazon UK Services used share-based employee rewards and deferred taxes to, – legitimately, cut its corporation tax bill to just £1million.
Amazon says its UK businesses paid £220million in direct taxes last year, but it includes employer national insurance, business rates and corporation tax.
James said Timpson is proud to pay the tax it does. He added: “You want to drive on roads to get to work; if you’re poorly, you want to go to hospital to get well; and when your kids go to school, you want that to be paid for. That’s why we don’t do any schemes or clever stuff.”
James and Sir John are also critical of town centre parking charges – an issue addressed in the Mirror’s High Street
■ Founded by William Timpson in 1865.
■ First shop opened in Oldham Street, Manchester.
■ Opened a factory in Kettering in 1923 making more than 20,000 pairs of shoes a week, including for royalty.
■ Floated on the stock market in 1929.
■ Bought by UDS Group in 1973.
■ Management buy-out, led by Sir John Timpson, in 1983. Shoe shops later sold off.
■ Now has 2,131 stores across its high street businesses, Timpson, Max Spielmann, Snappy Snaps, Johnsons the Cleaners and Jeeves of Belgravia.
■ Employs more than 4,700 people.
■ Taken on more than 2,000 ex-offenders in the last 15 years.
■ More than 10% of current workforce joined from prison.
Amount of corporation tax Timpson paid last year on sales of
Amount of corporation tax paid by Amazon UK Services last year on a turnover of
FIRST ONE Oldham St, Manchester, shop opened in 1865
Fightback campaign. Sir John said: “The main competition for those shops isn’t online, it’s out of town where there is easy, free parking.”
The firm based in Wythenshawe, Greater Manchester, is markedly different from many others. One such difference is its programme of recruiting ex-offenders from prison. It has helped more than 2,000 since James came up with the idea 15 years ago.
The firm also has no debt. James said: “There are too many businesses that are loaded up with debt. If that debt is used