Facebook paid just £4,327 in UK tax last year – less than the average worker

The London-based staff received an average payout of £210,000

Andrew Griffin
Sunday 11 October 2015 15:13 BST
The application works by comparing a user's Facebook 'likes' to those of six million other people
The application works by comparing a user's Facebook 'likes' to those of six million other people (Getty)

Facebook’s UK operations paid only £4,327 in taxes last year, less than the average worker.

The small bill was despite the company being able to pay its 362 UK-based employees an average of £210,000 in pay and bonuses. It gave its London staff Facebook shares worth £35.4 million, according to the report, pushing its losses to £28.5 million and so hugely reducing its tax bill.

Many of its other profits from the UK are sent to its international headquarters in Ireland, which then puts them in the low-tax Cayman Islands, reports the Sunday Times.

Because of the measures that meant the UK business actually widened its losses, the business was able to reduce its tax bill.

The £4,327 of taxes paid in the UK is less than that paid by the average person in the country. A single person on the average wage of £26,500 would pay £3,180 in income tax and £2,213 in national insurance payments.

The tax bill is up from last year – when it paid no corporation tax at all, for the second year running.

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Facebook’s UK staff were together paid £76.2 million, including salary and other bonuses. That averages out to over £210,000 each.

Facebook Inc, the parent company of the UK operations, reported at the beginning of the year that it had revenues of $12.5 billion in 2014, up 58 per cent from the year before. That translated into profits of $2.94 billion.

The company told The Sunday Times that it is "compliant with UK tax law and in fact all countries where we have employees and offices".

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