Facebook to Pay Millions More in UK Tax

Facebook-HQ-Logo-IRL.pngFollowing criticism over its avoidance of tax, Facebook will reportedly stop routing the majority of its UK ad sales through Ireland.

This means the company will pay millions of pounds more corporation tax in the UK, according to BBC News.

While ads sold on a self-serve basis will continue to be routed through Ireland, sales where Facebook staff are more involved will now be counted among its UK figures. The former is more common, but tends to mean smaller businesses, while the latter accounts for most of its bigger deals – the BBC names Tesco, Sainsburys, Unilever and WPP as examples of companies whose Facebook ads will now officially be bought in the UK.

“In light of changes to tax law in the UK, we felt this change would provide transparency to Facebooks operations in the UK,” reads an internal Facebook document revealed to the BBC. “The new structure is easier to understand and clearly recognises the value our UK organisation adds to our sales through our highly skilled and growing UK sales team.”

These changes will be put into effect this April, meaning Facebook will pay its first higher tax bill in 2017.

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