Facebook's UK tax bill jumps as profits rise

Oct 8, 2018 · bbc.com

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Facebook's UK tax bill has tripled to £15.8m - but the social media giant will see an immediate cut because of a tax credit.

The final bill comes to £7.4m, since Facebook will see tax relief of £8.4m after awarding shares to employees.

In 2016, Facebook's tax bill rose to £5.1m, following a major overhaul of the social media firm's tax structure.

However, the company's profits only climbed by £4m year-on-year from £58.4m to £62.7m in 2017. The company's UK office provides marketing services and sales and engineering support to the company.

Facebook's revenue rose by a third year-on-year to £1.2bn in 2017, because of increased revenues from inter-company and advertising reseller services in 2017.

"We have changed the way we report tax so that revenue from customers supported by our UK teams is recorded in the UK and any taxable profit is subject to UK corporation tax," said Facebook's Northern Europe vice-president, Steve Hatch.

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