The coffee shop chain attracted strong criticism from the public accounts committee (PAC) in 2012, when it emerged Starbucks had paid only £8.6m of corporation tax in Britain over 14 years. In response, the company moved its European HQ to London from Amsterdam.

Recent analysis by the Financial Times shows the company had an effective UK tax rate of 2.8% in the year to the end of October 2017. Its tax bill for 2017 was reduced partly by tax breaks related to employees being paid in shares and there was also a reduction from the ‘tax effect of expenses that are not deductible in determining taxable profit’, according to the company’s accounts for the Europe, Middle East and Africa region.

There is a separate filing for the main UK entity, Starbucks Coffee Company (UK) Ltd, which shows profits before tax fell last year to £4.5m, while the company paid £3.3m of tax.

Paul Monaghan, chief executive of the Fair Tax Mark, said: ‘It may be that Starbucks’ approach to tax is now more responsible but it is all but impossible to discern given their corporate complexity, staggered filings at Companies House and absence of true country-by-country reporting.’

In a statement, Starbucks said it ‘pays all its taxes and meets all international tax standards and regulations. Starbucks’ UK headquartered businesses paid £13.7m of corporation tax in the year to October 2017, an effective tax rate of 25.3%.’

Report by Pat Sweet