Facebook paid just £238k in UK corporation tax

Facebook has been dubbed 'immoral' after its accounts revealed that the social media giant had paid just paid £238,000 in corporate taxes last year - less than 1% of its 2011 turnover - despite estimated revenues of £175m.

In accounts filed with Companies House, the recently floated Facebook's London office coughed up just £238,317 in tax, almost half of what it paid - £424,651 - the year before. This is less than 1% of its 2011 revenues.

Labour MP John Mann said the company - and other web-based business' behaviour was 'disingenuous and immoral'.Speaking to the The Independent, Mann said: 'They benefit enormously from the country's internet infrastructure but do nothing to fund it. It's like driving a car with no tax. We would not stand for it on our roads so why stand for it on the net?'

Google also paid just £6m of corporation tax in the UK last year.

Facebook's accounts revealed that its London arm showed a pre-tax loss of £13.9m last year, against a £1.1m profit in 2010.

This is despite reaping an estimated UK advertising bonanza of £175m last year, say independent researchers Enders Analysis.

But its accounts show the UK staff bill leapt from £7.9m to £24.8m, despite just nine more employees joining to take the total to 90.

These staffing costs included a £15m 'share-based payment charge', believed to cover employees' income tax and national insurance costs incurred on shares received ahead of its May flotation.

Its Covent Garden-based employees look set to enjoy a potentially lucrative 7.3 million share distribution over the next five years, potentially worth tens of millions of pounds.

Facebook has 30 million UK users and expected revenues of up to £240m this year.

It can legally avoid UK corporation tax because its sales are processed in Dublin - home to an international office.

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