Facebook to pay millions more in UK tax

Facebook is reportedly set to pay millions of pounds more in UK tax after a major shake-up of the company's tax structure.

According to the BBC, profits from the majority of its advertising revenue initiated in Britain will now be taxed in the UK.

The company will no longer route sales through Ireland for its largest advertisers, which include Tesco, Sainsbury’s, Unilever and WPP.

Smaller advertising sales will still be routed through Ireland, however, which will remain Facebook’s international headquarters.

The BBC said the change will mean Facebook will account for substantially more revenue in the UK and as a result, will pay a higher level of corporation tax on its UK profits.

It is understood the changes will take effect in April and Facebook's first tax bill under the new system will be paid next year.

Channel 4 News revealed on Thursday that HM Revenue & Customs was paying the social network – which pays less tax than the average UK worker – six times as much money as it paid in tax for advertisements telling people to pay their taxes.

It said that while Facebook paid just £4,327 in tax in 2014, HMRC paid the company £27,000 the following year for adverts placed on its site.