Facebook to start paying more tax in UK
Tax news now, and Facebook are looking like they're going to pay millions of pounds in tax to the British Government, after being slated about this thorny issue for ages. The social network will stop channelling money through Ireland, as some of their biggest advertisers will now be taxed in the UK.
In 2014, Facebook paid a measly £4,327 in corporation tax, after making a whopping annual profit of £1.9 billion. This will all come into play April, with the money landing in 2017.
“Like all large organisations we find that an increasing number of those we serve communicate through and get their information from social media," a spokesperson for HMRC said. "Our investment in social media is carefully evaluated to ensure we are getting maximum value for the taxpayer."
Talking to the Indy, a spokesperson for Facebook said: "On Monday we will start notifying large UK customers that from the start of April they will receive invoices from Facebook UK and not Facebook Ireland. What this means in practice is that UK sales made directly by our UK team will be booked in the UK, not Ireland. Facebook UK will then record the revenue from these sales."
"In light of changes to tax law in the UK, we felt this change would provide transparency to Facebook's operations in the UK."
"The new structure is easier to understand and clearly recognises the value our UK organisation adds to our sales through our highly skilled and growing UK sales team."
Of course, this is a hot topic, as a lot of multinational companies have been heavily criticised over the amount they've been paying for their UK tax bills.