Facebook: still not paying tax
Facebook reported a pre-tax loss of £11.6m in the UK last year, despite its US parent company reporting a net profit of $1.5bn (£900m).
The company's UK revenues rose from £34.6m to £49.8m, according to Facebook UK’s latest financial filing at Companies House published on Wednesday.
According to Facebook, its turnover is classed as “marketing and engineering services”, due to much of their ad revenue being sifted through Ireland because lower tax rates.
Facebook also made £371m in advertising revenue last year, which is a 67% rise from £222m in 2012. Facebook UK have however incurred a corporation tax charge of £3,169, as well as receiving a credit of £182,000.
Also, the UK end employs 172 staff, who were paid £40.8m last year, almost double of 2012's £21m. Most of this could be laid at the door of the £15.5m payment cost for share-based payments, as UK staff received 1.52m free Facebook shares worth $118m at their current share price of about $78.
So yes. All a bit uncool, especially given that Mark Zuckerberg is splashing out $100m on his own island. He'll probably set a bank up on it so Facebook can 'rest' funds there too.