Facebook paid just stg£3,200 for its UK operations last year

23 Oct 2014

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The latest accounts from Facebook’s operations in the UK have shown that for the second year running, the social network has paid little to no corporation tax to the UK government.

No doubt angering many in the opposition and taxpayers alike, estimates place Facebook’s UK revenues somewhere in the region of stg£371m for last year which would be a substantial increase from stg£223m in 2012.

The issue with critics however is that Ireland’s own Facebook operation is acting as the largest intake of revenue across the British Isles as their UK accounts show revenues of just stg£49.8m with a pre-tax loss of stg£11.6m.

This means in total, Facebook paid a mere stg£3,200 to the British government while also receiving a tax adjustment from figures over the previous four years to the tune of stg£182,000.

Meanwhile, Facebook’s considerable profitability worldwide has seen its shares divvyed up amongst its staff with UK staff in particular receiving approximately 1.5m shares worth a total of stg£72.5m or stg£350,000 per employee.

These same employees will also be entitled to receive further stocks in the near future totalling approximately 2.2m worth around stg£105m.

Unsurprisingly, Facebook declined to comment on the matter except for a brief statement re-affirming that all their tax payments are above board and legal in the operating countries.

Facebook on screen image via Shutterstock

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Colm Gorey is a journalist with Siliconrepublic.com

editorial@siliconrepublic.com