Facebook’s taxes are about to go up in the UK

Facebook has done some restructuring of how things are done in the UK branch of their business, and that looks like it’s going to result in some heavily increased taxes over the next few years. The company faced pretty serious pressure for routing things through Ireland for its biggest advertisers, which helped Facebook avoid the UK’s 20% tax on corporate profits.

Small, online booked advertising will still be run through Ireland, and the company’s international HQ will remain there, too, but their recorded revenue in the UK should shoot up dramatically when this goes into effect in 2016. Of course, after everyone found out that Facebook only paid £4,327 in corporate taxes in the UK in 2014, it was pretty clear that they were going to see some serious kickback to stop avoiding the bulk of their taxes in the country.

Facebook employs 850 people in the UK, and it’s building a new location in London. The UK is obviously very valuable to Facebook, so it makes sense to keep everything on the up and up with the government there.

On a related note, Facebook’s old method of paying taxes was the same method that Google currently uses, and Google was recently fined with back taxes from the UK government. This might not be the only major global company we see to change their tax structure in the UK after all.

source: BBC

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