Monday, 8 October 2018

Facebook's UK tax bill has tripled to £15.7m after bumper year

Facebook will pay the UK under £15.7m in tax this year despite record revenues, as politicians continue to scrutinise the company's business model.
The tech giant saw UK revenues of more than £1.26bn, but corporation tax is paid on profits rather than revenues and Facebook saw its profits suppressed by spending £758m to bring in sales and another £444m on administrative expenses.

This left the company with a meagre operating profit of £62m, barely above the £58m it recorded in 2016, although its tax bill is more than triple the £5.1m it paid into the taxman's coffers back then.

Facebook will not pay the full £15.7m, however - its net tax charge will be only £7.4m due to HMRC rules allowing the company to offset tax on profits against employee share awards.

The offset stands in contrast to Amazon, which has raised the minimum wage for its employees in the UK and as such has increased its own tax footprint by pulling share benefits.

SKY    News.

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