Apple and Google are collecting more revenue from a so-called "app tax" charged to Britons than they pay in UK corporation tax, according to new analysis. The study found the tech giants generate roughly £700million annually through commissions of up to 30 per cent on in-app purchases, compared with £322million paid by Apple in corporation tax last year and £146million paid by Google, prompting campaigners and politicians to call for tighter regulation of app store fees.

The research calculated that for every £1 the two firms contribute in corporation tax, they charge Britons around £1.50 through in-app purchase fees, equivalent to about £55 a year for a household with four smartphone users, a figure projected to rise to £91 within five years as the total cost to Britons reaches £4.1billion. Former minister Damian Collins and the Coalition For App Fairness criticised the firms for "overcharging and underpaying", while the Competition and Markets Authority has proposed forcing Apple and Google to let users access cheaper subscription deals, though it has stopped short of capping fees outright despite having the legal power to do so.