Big payday at Facebook UK — but only £4,327 for taxman: Sunday Times

Employees walk past the company logo at Facebook offices in Menlo Park, California.
Robert Galbraith | Reuters

Facebook paid just £4,327 ($6,632) in taxes in the U.K. last year despite offering staff in London an average of £210,000 in pay and bonuses, the Sunday Times reported.

The social network giant offered shares worth £35.4 million to its 362 London staff, pushing its British division into an accounting loss of £28.5 million last year, according to accounts for Facebook UK Limited.

Its widening losses allowed Facebook to minimise its corporation tax bill in Britain, the newspaper reported.

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Facebook's tax payment is substantially less than that the U.K.'s revenue authority collects from the typical British worker. A single person earning £26,500 — the average UK wage — generates £3,180 in income tax and £2,213 in national insurance.

The Sunday Times report can be seen here.