Facebook to pay just £7.4 million on 2017 UK tax bill

Facebook's UK tax bill triples to £15.7m

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. That's only for its United Kingdom operations, mind, since the parent company reported £1.2 billion in revenue last year, a third year-on-year rise, as a result of increased revenues from inter-company and advertising reseller services. The bill compared with 5.1 million pounds in 2016, Facebook's British division revealed in an official document lodged last week.

Labour MP Margaret Hodge said it was "absolutely outrageous that Facebook's United Kingdom tax bill is 0.62% of their revenue".

He tweeted: 'We should have a levy on the big tech companies to help fund online media literacy education and to support our data watchdog'.

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

Its profits were reduced by £759 million in sales and £444 million in unexplained "administrative expenses".

Storm Callum: Severe gusts expected in North West this morning
Schools are empowered to make closure decisions if, in their judgment in the interests of child safety, it is prudent to do so. Rail services to Drogheda, Dundalk and Belfast have been suspended because of a tree on the line at Donabate in Dublin.

Large tech firms have come under scrutiny in recent years regarding the level of tax they pay in the United Kingdom and mainland Europe.

The news comes as the Treasury plans to introduce a new tax on advertising revenue for technology businesses in the United Kingdom, a move that Chancellor Philip Hammond hopes will spare United Kingdom start-ups and instead mainly affect USA businesses.

"HMRC has a very strong track record for enforcing the rules on everyone and subjects large businesses to an exceptional level of scrutiny".

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

It is also planning to double its office space in King's Cross, London, with capacity for more than 6,000 workstations by 2022. Corporation tax is calculated based on profit, rather than gross revenue, which is usually the reason why big companies seem to pay such small amounts of tax, but a quarter of the annual revenue seems "fairer" considering what regular people have to pay.

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