Only £4,327 for HMRC despite Facebook UK’s £105m revenues
FACEBOOK paid just £4,327 in corporation tax last year – less than the annual cost of travel for some people commuting to London from Brighton each day.
The social media giant rewarded its UK staff with an average of £210,000 in pay and bonuses, and spent £35.4m on shares for 362 London employees, bringing the division’s losses to £28.5m, significantly reducing its tax bill, according to its latest reports.
UK revenues hit £105m in 2014, more than double the previous year.
Most of the company’s finances go through its European headquarters in Ireland where it is able to minimise taxes through the “Double Irish” loophole, whereby income reported in foreign subsidiaries of Irish-headquartered firms is not taxed by the Irish government.
George Osborne is expected to crack down on such tax avoidance practices in his Autumn Statement.