TECH
12/10/2015 09:03 BST | Updated 12/10/2015 09:59 BST

Facebook Paid £4,327 In Corporation Tax Last Year In The UK

Facebook paid £4,327 in corporation tax in the UK last year according to the company's latest filings. This is despite paying its 362 UK staff an average of £210,000 per year.

By giving its UK staff shares worth upwards of £35.4 million, the company increased its losses in the UK to £28.5m in turn significantly reducing the amount of tax that it needs to pay.

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Although employing over 300 people in the UK, Facebook's international HQ for the region is based in Ireland while many of its tax arrangements are based out of the Cayman Islands.

The amount paid by Facebook is actually less than the average amount that a single person pays in the UK. The Independent points out that the average salary is £26,500 which would results in a total of £5,393 being deducted in tax and National Insurance.

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Facebook responded to the news, giving a statement to The Sunday Times saying: “We are compliant with UK tax law, and in fact in all countries where we have operations and offices. We continue to grow our business activities in the UK”

The £4,327 paid last year is actually an increase in the amount of corporation tax paid by Facebook in the UK, after it paid nothing for the past two years before that.