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

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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.

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“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.

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Luke Cranfield

October 12, 2015, 1:47 pm

If they aren't breaking any laws why would they pay more?

TheHulksMothersCousin

October 13, 2015, 2:36 am

i understand Facebook have no interest in ethics unless it hinders their profit but the UK government disgust me for allowing these greedy vileexcuses for human beings to profit whilst the same cowardly manipulative politicians take away the benefits that the poor including those working need to eat properly, keep warm and stay healthy.

Prem Desai

October 13, 2015, 5:45 am

What a ridiculous question?

Much as I detest Facebook, why should they (or any corporation) pay more tax than they have to? Would you? I don't think so.

The fault here is clearly with the U.K. Government not having the balls to make these corporations pay tax in line with their income by having a plethora of loopholes.

Paul

October 13, 2015, 9:34 am

hit them hit them now!

paulsc

October 13, 2015, 12:18 pm

Wouldn't the employees have to pay income tax (but not NI) on the share bonuses. If so, wouldn't that net HMRC more money than the corporation tax on what would have been their profits?

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