Facebook & PayPal: Tax Tales from the UK
Facebook has just raked in a hefty £15.7 million in taxes for last year— that’s three times the bill it paid back in 2016. The amount comes from the company’s pre‑tax profits (that’s the earnings before the taxman takes his slice). The tech giant’s profit itself nudged up 6.3 % to £62.7 million in 2017, up from £58.4 million in 2016.
Why the jump?
- More users clicking on ads – why the ad revenue hike?
- Cost‑cutting measures that keep the profit margin healthy
- New market ventures, like Facebook Marketplace, pulling in fresh cash flows
What’s the tax story?
The £15.7 million figure was calculated straight from those pre‑tax profits. That means the tax rate applied to a post‑profit amount that’s been showing steady growth.
PayPal’s UK Subsidiary Also Gets a Tax Twist
Meanwhile, PayPal’s UK arm is paying an extra £3.1 million in tax after a scrutiny by HMRC.
In a newly filed set of accounts, PayPal’s UK says:
“HMRC has been reviewing the company’s direct tax position.
As a consequence, the company has agreed and settled its outstanding liabilities, and as a result is not subject to any current enquiries.”
In plain English: PayPal has come clean, settled what was owed, and is now square with the tax authorities.
Bottom line
- Both giants show growing profits and are paying their fair share in UK taxes.
- PayPal’s bill reflects a successful resolution after HMRC’s review.
- The tax landscape for big tech is clearly evolving, and that extra money is a fact of business.
Stay tuned for more real‑time updates on these corporate tax stories—because even high‑tech don’t escape the taxman’s watchful eye.
