Facebook is changing its tax structure in the UK. As from April its profits from advertising in the UK will be taxed in the UK. It had faced criticism due to only having paid ÂĢ4,327 in corporation tax in 2014.
It's not known how much of its profits are generated in the UK but it's expected that Facebook will pay millions more in UK corporation tax.
http://www.bbc.co.uk/news/business-35724308
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Moonie, Facebook has a UK subsidiary which has to file accounts each year with HMRC and with Companies House.
What had been happening was that the advertising for the largest UK advertisers was being channelled through Facebook's Irish subsidiary. As from April, that advertising will be channelled through the UK subsidiary.
A Wiki article on what is called double-Irish arrangements which the likes of Google and Facebook have used.
https://en.wikipedia.org/wiki/...le_Irish_arrangement
The Irish government is in the process of squashing those arrangements but for those companies which had been using this tax avoidance scheme have to have stopped using them by 2020. So the rationale for Facebook using Ireland to avoid tax is going as what is earned in Ireland will be paid at the normal Irish corporation tax rate (12.5%) rather than next to nothing. So the Irish government won't lose out by the UK profits remaining in the UK in future and the UK government gains by the UK profits being taxed here instead of elsewhere.
El Loro posted:Facebook is changing its tax structure in the UK. As from April its profits from advertising in the UK will be taxed in the UK. It had faced criticism due to only having paid ÂĢ4,327 in corporation tax in 2014.
It's not known how much of its profits are generated in the UK but it's expected that Facebook will pay millions more in UK corporation tax.
http://www.bbc.co.uk/news/business-35724308
About time .....lets hope others follow suit !!
Baz posted:El Loro posted:Facebook is changing its tax structure in the UK. As from April its profits from advertising in the UK will be taxed in the UK. It had faced criticism due to only having paid ÂĢ4,327 in corporation tax in 2014.
It's not known how much of its profits are generated in the UK but it's expected that Facebook will pay millions more in UK corporation tax.
http://www.bbc.co.uk/news/business-35724308About time .....lets hope others follow suit !!
Yes, it would seems the Facebook page I setup to challenge Facebook has worked.
This is a joke, it may take years before they pay anything at all as they are deferring losses against tax....perfect example of spin from the govt....headline but no mention of the smaller print
Amythist posted:This is a joke, it may take years before they pay anything at all as they are deferring losses against tax....perfect example of spin from the govt....headline but no mention of the smaller print
They did say that it would be 2017 on the news, but as you say this could be a headline grabber and not reality.
I put this question to everyone here on Facebook and I suppose to the wider UK public. If you are unhappy with Facebook not paying their fair share of taxes, would you be prepared to suspend your Facebook account until they do?
My guess is very few would
Enthusiastic Contrafibularities posted:Amythist posted:This is a joke, it may take years before they pay anything at all as they are deferring losses against tax....perfect example of spin from the govt....headline but no mention of the smaller print
They did say that it would be 2017 on the news, but as you say this could be a headline grabber and not reality.
I put this question to everyone here on Facebook and I suppose to the wider UK public. If you are unhappy with Facebook not paying their fair share of taxes, would you be prepared to suspend your Facebook account until they do?
My guess is very few would
Yes I agree few would because its a great free service for us...and why should we be doing HMRC's job. A tiny percentage of their manpower and budget is employed to look at corporations .
2018 is when they present their accounts elegable for taxation and they could offset ÂĢ21 million of tax losses accrued already
The ÂĢ21 million is a deferred tax asset. Of that, the tax losses being carried forward is just under ÂĢ10 million. Most of the rest is timing differences on share based payments. We do not know when the timing differences on share based payments will impact on the corporation tax. It could be any time over the next 4 years and it's made more complicated as there will be further share based payments in future years. So it's the ÂĢ10 million which we know will be available against the 2016 profits. And that ÂĢ10 million comes from the December 2014 accounts. The December 2015 accounts have yet to be filed (they aren't due yet) so the losses figure will change.
Incidentally the ÂĢ4,327 coporation tax payable for 2014 is the tax on Facebook's interest income for 2014. Trading losses brought forward from 2013 cannot be used against interest income in 2014.
Enthusiastic Contrafibularities posted:Amythist posted:This is a joke, it may take years before they pay anything at all as they are deferring losses against tax....perfect example of spin from the govt....headline but no mention of the smaller print
They did say that it would be 2017 on the news, but as you say this could be a headline grabber and not reality.
I put this question to everyone here on Facebook and I suppose to the wider UK public. If you are unhappy with Facebook not paying their fair share of taxes, would you be prepared to suspend your Facebook account until they do?
My guess is very few would
I got rid of mine a good while ago 
Amythist posted:Enthusiastic Contrafibularities posted:Amythist posted:This is a joke, it may take years before they pay anything at all as they are deferring losses against tax....perfect example of spin from the govt....headline but no mention of the smaller print
They did say that it would be 2017 on the news, but as you say this could be a headline grabber and not reality.
I put this question to everyone here on Facebook and I suppose to the wider UK public. If you are unhappy with Facebook not paying their fair share of taxes, would you be prepared to suspend your Facebook account until they do?
My guess is very few would
Yes I agree few would because its a great free service for us...and why should we be doing HMRC's job. A tiny percentage of their manpower and budget is employed to look at corporations .
2018 is when they present their accounts elegable for taxation and they could offset ÂĢ21 million of tax losses accrued already
I see it less as doing the HMRC's job more as citizen's helping the state by direct action. I mean to take your point forward should we ignore the number plate of the vehicle which clips the cyclist and drives off, after all it's the police's job to detect crime.
