Facebook's massive tax bill in the UK

Philip Hammond

Philip Hammond

In 2016, Facebook's tax bill rose to £5.1m, following a major overhaul of the social media firm's tax structure. Media reported however that Facebook UK's net tax bill for 2017 will stand at 7.4 million pounds due to a tax relief credit of more than 8.4 million pounds on employee stock awards.

There's always a lot of outrage whenever it's revealed how much tax big companies are paying, generally because it looks as though they're paying an absolute pittance when compared to the rest of their income.

If you've been concerned with the amount of tax companies like Facebook pay, you'll be happy to hear that £15.7 is just over a quarter of £62.7 million. Facebook, one of the world's biggest businesses, generated global revenue of more than £30 billion a year ago and is valued at nearly £350 billion.

Shadow chancellor John McDonnell said: "The Tories are letting large multinationals get away without paying their fair share of tax".

Documents released on Monday showed the company paid a net £7.4m in corporation tax past year after an £8.4m credit for staff share awards cut the total from £15.8m.

Johnny Depp addresses 'Fantastic Beasts' casting controversy
I spoke to a few producers and the director and to J.K. and had long conversations basically about the Grindelwald character. After Harry Potter and the Deathly Hallows: Part 2 hit theaters in 2011, many Potterheads were devastated thinking that J.K.

It pointed to damage to profitability from a £759m cost of sales and £444m in "administrative expenses" that were not explained.

The news comes amid political and public challenges, over the levels of taxes paid by hi-tech giants like Amazon, Apple, Facebook and Google. "If we can not reach agreement, the United Kingdom will go it alone with a digital services tax of its own.".

Facebook - like other US-based global companies - point out that taxes paid are within the legal frameworks of the nations in which they operate.

"By the end of 2018 we will employ 2,300 people in the United Kingdom and we are doubling our office space in London's King's Cross with capacity for more than 6,000 workstations by 2022".

Facebook said it has changed the way it reports tax so that revenue from customers supported by its UK team is recorded in the UK, and any taxable profit is subject to UK corporation tax.

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