Revealed: Facebook's latest UK tax bill was £2.6m as revenues quadrupled

 
Lynsey Barber
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Facebook is paying more tax in the UK than previous years (Source: Getty)

Facebook paid tax in the UK of £2.6m after agreeing to report the revenue it brings in from advertising in the UK instead of Ireland.

Revenues came in at £842m in 2016, the latest figures available, four times larger than the previous year after it made the changes according to the freshly filed accounts.

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And pre-tax profits were £55.8m compared to a £41.2m loss in 2015.

Facebook's tax bill for the year was £5.2m, but it paid less - the £2.6m - due to deductions related to some expenses.

The year prior its bill came in at £4.2m, but that was offset by a tax credit of £11m and in 2014 it paid just £4,327, sparking outrage and scrutiny from MPs, leading to the eventual agreement to pay more in the UK.

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“Last April, we actively chose to reorganise our company structure to record revenues from our large UK sales customers in the UK. We believed this would provide greater transparency on our operations in London and be easier for people to understand," said a Facebook spokesperson.

"These accounts reflect that change. We continue to invest and expand in the UK, employing 1500 people in our new offices by the end of this year, which is also home to our largest engineering base outside the US.”

It comes as fellow tech giant Amazon faced a hefty bill for back taxes from the EU which is cracking down on US firms' tax arrangements with countries such as Luxembourg and Ireland, where the EU said it should also collect billions in back taxes in a similar case.

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