Facebook to pay millions of pounds more in UK tax

Facebook is set to pay millions of pounds more in tax in the UK after a major overhaul of its tax structure, reports BBC. After heavy criticism that it was avoiding tax, the BBC can reveal that profits from the majority of Facebook's advertising revenue initiated in Britain will now be taxed in the UK. It will no longer route sales through Ireland for its largest advertisers. That includes major businesses such as Tesco, Sainsbury's, consumer goods firm Unilever and advertising giant WPP. Smaller business sales where advertising is booked online - with little or no Facebook staff intervention - will still be routed through Ireland, which will remain the company's international headquarters. I am told the change will mean that Facebook will account for substantially more revenue in the UK and will therefore pay a higher level of corporation tax on the profits it makes here. Corporation tax is levied at 20per cent on the profits a business makes. The changes will be put in place in April and Facebook's first, higher, tax bill, will be paid in 2017. Sources say that Facebook moved after coming under increasing global pressure on its tax affairs and as a reaction to changing tax rules.

Facebook to pay millions of pounds more in UK tax

Facebook is set to pay millions of pounds more in tax in the UK after a major overhaul of its tax structure, reports BBC. After heavy criticism that it was avoiding tax, the BBC can reveal that profits from the majority of Facebooks advertising revenue initiated in Britain will now be taxed in the UK. It will no longer route sales through Ireland for its largest advertisers. That includes major businesses such as Tesco, Sainsburys, consumer goods firm Unilever and advertising giant WPP. Smaller business sales where advertising is booked online - with little or no Facebook staff intervention - will still be routed through Ireland, which will remain the companys international headquarters. I am told the change will mean that Facebook will account for substantially more revenue in the UK and will therefore pay a higher level of corporation tax on the profits it makes here. Corporation tax is levied at 20per cent on the profits a business makes. The changes will be put in place in April and Facebooks first, higher, tax bill, will be paid in 2017. Sources say that Facebook moved after coming under increasing global pressure on its tax affairs and as a reaction to changing tax rules.