Facebook is the latest large American corporation to be facing awkward questions about its UK tax bill. The tech giant paid a mere £4,327 in corporation tax in 2014 – less than the average British worker.
It racked up sales of £105m in the UK last year, but took a £28.5m loss after paying out ‘administrative expenses’ of £131.6m, according to its latest accounts filed with Companies House. Almost two thirds of that (£86.3m) was staff costs, included £35.4m in ‘share based payments’. It's not clear what the rest is.
That means Facebook’s UK-based staff (numbering 362 on average in 2014) took home an average of £210,000 each, £98,000 of which came from the generous share scheme.