Starbucks says it will start paying more UK tax - but baristas face cutbacks
Starbucks has bowed to the public outcry over its tax affairs and agreed to amend its operation, increasing its rate of corporation tax contributions, but 7,000 of the coffee giant's staff in the UK are now faced with cutbacks to their paid lunch breaks and sick leave.
The company has been using an arrangement which sees it transferring much of its UK profits to the Netherlands to legally reduce its taxable income. As a result, it has paid corporation tax only once in the fifteen years since it opened its first UK store.
But Starbucks has said that, while its UK subsidiary will continue to be charged the 4.7 per cent rate by its Dutch counterpart for use of the Starbucks brands, it is planning to stop using that deduction to reduce its UK tax bill.
The coffee chain paid no tax last year on the £400m it took in sales. If it decides to go ahead with the plan, it will be announced before the Chancellor George Osborne’s Autumn Statement to the House of Commons on Wednesday, the BBC reported.
Meanwhile, baristas at the firm's 750 stores have been told to sign employment terms that include the removal of paid 30-minute lunch breaks and paid sick leave on the first day of illness, The Guardian reported last night. Starbucks said the 30-minute break should not be paid for as it was "meant to be a break from work". A spokeswoman said changes were "unrelated" to the tax affairs
The Chancellor also promised Her Majesty’s Revenue and Customs an extra £77m in funding over two years to “go after” aggressive avoiders and evaders, branding the behaviour “unacceptable”. He said: “It is very important that people who try to avoid their taxes understand that we are going after them.
In a statement, Mr Osborne warned that the “minority” who avoid paying their fair share, sometimes by breaking the law” to expect a crackdown. He said: “The action... will help HMRC close in not only on those who seek to avoid or evade tax, but on the dubious ‘cowboy’ advisers who sell them the schemes and dodges they use to cheat the law-abiding majority.”
Chief Secretary to the Treasury Danny Alexander said: “In restoring the public finances, our first priority must be to tackle those who avoid or evade tax.
“It is simply not fair that at a time when most people are making a contribution to balancing the nation's books, there is a small minority of taxpayers who try to escape their responsibility.”
- 1 Scientists create transparent mouse complete with see-through organs
- 2 Pope Francis issues top 10 tips for happiness
- 3 Disney heiress Abigail disowns her share of family profits in West Bank company
- 4 Israel's propaganda machine is finally starting to misfire
- 5 Amazonian Indian tribe filmed making contact with Brazil village in rare video footage
Mystery of the Siberian holes at the end of the world 'solved': Scientists offer explanation
Pope Francis issues top 10 tips for happiness
Kenny Ireland dead: Benidorm actor dies aged 68
Justin Bieber posts Instagram photo of Orlando Bloom crying after Ibiza fight 'over Miranda Kerr'
Putin v Obama: Russian deputy prime minister mocks president with catty pictures on Twitter
Land for gas: Merkel and Putin discussed secret deal could end Ukraine crisis
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Boozy, ignorant, intolerant, but very polite – Britain as others see us
A new Russian revolution: The cracks are starting to appear in Putin’s Kremlin power bloc
- < Previous
- Next >
iJobs Money & Business
£300 - £350 per day: Orgtel: Financial Analyst, Forecasting, Halifax, Banking,...
£500 per day: Orgtel: Business Architect - Banking - Bristol - £500 per day A...
£200 - £500 per day + competitive: Orgtel: I am currently working on a large p...
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...