Home / News / Internet News / Facebook paid £4,327 in UK corporation tax last year

Facebook paid £4,327 in UK corporation tax last year

by

Zuckerdollar

The world’s largest social network, Facebook, paid just £4,327 in UK corporation tax last year.

That’s despite paying its UK staff – comprised of 362 employees – a total of £35.4 million in share bonuses.

Those bonuses work out to a £96,000 average for each UK Facebook employee.

We should note that Facebook formally filed a pre-tax loss of £28.5 million in 2014.

The BBC notes that the average UK salary is £26,500, a wage that results in income tax and national insurance contributions amounting to £5,392.80 yearly.

We are compliant with UK tax law, and in fact in all countries where we have operations and offices,” says a Facebook spokesperson, in response to media coverage on the matter. “We will continue to grow our business activities in the UK.”

Facebook’s global Q4 profits last year were £462 million, which is up 34% year on year.

The total profits for the whole year, meanwhile, were $2.9 billion (£1.9bn) globally.

Related: Best Web Browser 2015

“Taxpayers will be justifiably confused and angry about this tax bill,” explains John O’Connell, director of the Taxpayer’s Alliance. “But Facebook is right to say that it is complying with UK law, which shows that the problem lies with our complex tax code, and that is what politicians should address as a matter of urgency.”

O’Connell adds: “We have to ensure our taxes are simple to eliminate loopholes, and that taxes are low to increase our competitiveness, so that companies choose to base themselves here.”

Do you think Facebook should pony up more cash to the UK’s coffers? Let us know in the comments.

Check out our smartphone buyer’s video guide below:

comments powered by Disqus