Corporate tax in the UK will fall to 17% in April 2020, making the UK a more attractive country to do business. Let’s have a look at how much corporate tax large companies pay.
Facebook’s UK operation expanded in 2018 with staff numbers rising from 1,290 to 1,965 year on year. A total staff wages and pension bill is £431m.
The company’s UK division makes sales, provides engineering support to other parts of the company and is involved in the marketing services. Facebook spent £356m on research, development and engineering in the UK last year, according to its claims.
Facebook’s UK operations paid £28m in corporation tax last year despite achieving a record £1.6bn in British sales. Facebook UK said that the net revenues it made from advertisers rose 50% last year to £797m. The company converted 12% of its sales to profits, while globally it turned 44% of sales into profits.
Google UK reported £1.4bn in revenues in 2018 (up 14%). Google paid £66.8m in UK corporation tax, up from £49.7m. Apple paid £3.8m in tax on £1.2bn in sales last year. Some accuse Amazon of continuing to underpay corporation tax in the UK despite nearly tripling the payment from a British division to £14m from its £2.3bn in UK sales.
Oracle Capital Group believes that the UK remains an attractive jurisdiction for large and small businesses and will expand its business support unit in 2020, to meet the increasing demand for corporate services in the UK.