UPDATE:A previous version of this story said Google's revenue in the UK would total £3.95bn and not £395m.
Google will pay just £6m in UK taxes - despite earning £395m in UK revenue, according to a newspaper report.
The Telegraph said that Google will only pay a relatively small increase in taxes, despite taking in more money in 2011 than 2010.
The search giant, which has its UK headquarters in Central London, will report a loss of £24.1m after tax, due in part to a £51.45m cost incurred on shares given to employees.
Google employs around 1,300 people in the UK.
In total it will pay £6.09m in tax in the calendar year 2011 - compared to £8m for the six years to the end of 2010.
Google recently reported a jump in quarterly worldwide profits, from $2.5bn in the three months ending June 2011 to $2.8bn in 2012.
Google's revenues were initially reported by the Telegraph to be in the billions - but Google has now corrected these figures, saying it made £395m in UK revenue.
In a lecture at the Edinburgh Television Festival in 2011, Google CEO Eric Schmidt said that Google would pay more tax if there was a change in the law.
"We love Britain," said Schmidt. "If Britain changes its tax laws, we will pay taxes in accordance with those laws. I can't be clearer than that."
A Google spokesperson told the Telegraph that the company complies "with all the tax rules in the UK".
"We make a big contribution to the UK economy by employing over a thousand people, helping hundreds of thousands of businesses to grow online and investing millions supporting new tech businesses in East London," they said.