Facebook earning increases in UK through adverts

COURTESY THE MIRROR

Facebook reportedly earns more from selling advertising space to Westminster than it pays in tax in the UK.

Figures released under the Freedom of Information Act show that the social network raked in £27,000 by flogging ads to HM Revenue & Customs (HMRC) during 2014 while paying just £4,327 in tax.

The figures were obtained by foreign media and show that Facebook paid less tax than a British worker, who can expect to fork out about £5,393 of an average annual salary of £26,500.

An HMRC spokesman insisted the Facebook adverts were good value for money.

“Like all large organisations, we find that an increasing number of those we serve to communicate through and get their information from social media,” he said.

“Our investment in social media is carefully evaluated to ensure we are getting maximum value for the taxpayer.”

Facebook UK Limited recorded £105 million revenue in the UK last year but experts believe the total could be more than five times higher.

The company legally avoids tax by routing most of its advertising revenue from across Europe through Ireland, which protects it from HMRC.

A spokesman for Facebook said: “We are compliant with UK tax law and in fact all countries where we have employees and offices.”