Facebook, the US-based social network, has confirmed that it will in future pay more corporation tax in the UK rather than routing their profits through Ireland. The decision comes after the company was criticised for paying corporation tax of just over £4,000 in 2014 despite recording substantial annual profits.
Facebook said in a statement:
“On Monday we will start notifying large UK customers that from the start of April they will receive invoices from Facebook UK and not Facebook Ireland.
What this means in practice is that UK sales made directly by our UK team will be booked in the UK, not Ireland. Facebook UK will then record the revenue from these sales.
In light of changes to tax law in the UK, we felt this change would provide transparency to Facebook’s operations in the UK”.
The changes will take place from 2017