Innovation
Facebook engineers loss in UK in 2013 - collects tax refund
By Michael Hennigan, Finfacts founder and editor
Oct 23, 2014 - 8:21 AM

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President Obama speaks to Facebook's Mark Zuckerberg, at a dinner in Silicon Valley, March 2011

Facebook in 2013 paid no UK corporation tax for the second year in a row in 2013 - it got a refund meaning that in the tree years 2011-2013, its total tax payment was a net £3,169 (no zeros missing!).

The giant social networking service reported a pre-tax loss of £11.6m in the UK while Facebook Inc. reported a net global profit of $1.5bn (£900m) in 2013.

Expenses almost doubled to £61bn.

Facebook' s ad revenues in the UK in 2013 jumped 67% to £371m and will almost rival Google's this year according to eMarketer, an ecommerce research firm

UK booked revenues rose from £34.6m to £49.8m - the rest were transferred to Ireland using the Double Irish tax dodge scheme.

Michael Noonan, finance minister, said in last week's Budget that companies like Facebook will be able to use the scheme until 2021.

Facebook had a UK payroll of 172 at end of 2013 and pay rose to £40.8m compared with £21m in 2012. It says the rise related to “share-based payments” worth £15.5m.

The UK staff received 1.52m free Facebook shares worth $118m at their current share price of about $78.

Facebook had paid £185,196 in corporation tax in 2011 and it got a £182,027 credit from the taxman – leaving a charge of just £3,169 in 2013 - which is the total tax charge for 2011-2013.


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