Facebook Only Paid £4,327 Corporation Tax Last Year

The latest UK results have shown that social media giant Facebook paid just £4,327 (or $6,643) in corporation tax last year.

The most recent Companies House filing shows that the company made a pre-tax loss of £28.5m last year, but that they also paid their 362 UK staff  £35.4m in share bonuses.

For an average UK Facebook employee, those share bonuses amount to £96,000.

These results mean the corporation tax bill was less than the average UK employee paid in tax on their salary in 2014.

Keep in mind, though, that these are last year’s results. Back in January, Facebook reported global fourth quarter profits of $701m (£462m), a 34% increase on the year previous.

They also made almost double their profits for the year compared to 2013, making a staggering $2.9 billion.

This latest news about just how little Facebook are paying will undoubtedly reignite concerns about how much UK tax corporations pay, especially when several companies are being investigated by the European Commission due to tax arrangements with EU member states.

Just last week, an OECD/G20 report found that the laws that allow companies to shift their profits overseas to low tax jurisdictions meant that between $100bn and $240bn has been lost in tax revenues every year.

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Facebook Only Paid £4,327 Corporation Tax Last Year
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Facebook only paid £4,327 in UK Corporation tax last year. Hmm.