Feeds

Facebook says it's LOSING money in the UK ... pays hardly any tax

90 costly employees put ads firm in the red

The next step in data security

Facebook's UK operation plunged to a £13.9m pre-tax loss in 2011, compared with a £1.1m profit a year earlier, accounts filed with Companies House revealed.

The dominant social network blamed a "share based payment charge" of more than £15m last year. It said that profit before tax that excluded that payment stood at £1.5m for the year.

But the company swung to a big loss in Blighty to cover ballooning staff costs even though it only conservatively bumped up its workforce by nine employees during the 12 months. As of 31 December 2011, Facebook had 90 people working at its UK headquarters in London.

The filing shows that it spent nearly £25m on wages and employee costs in Blighty last year. The massive £15m share based payment is understood to be related to income tax and national insurance on shares Facebook staffers bagged ahead of the company's infamous IPOcalypse.

A year earlier, staff costs totalled £7.8m. As noted elsewhere this morning, that means that each member of staff at Facebook's UK division cost the company around £275,000 in 2011.

Facebook's European headquarters are in Dublin, Ireland. Researchers at Enders Analysis have estimated that Facebook brought in ad sales of around £175m last year. At the same time, the company's tax payments fell from £424,651 in 2010 to just £238,317 last year. Of which, £185,196 was corporation tax.

It's a move that has inevitably led to allegations of tax avoidance against Facebook.

The company told the Evening Standard, which was first to report Facebook's latest UK accounts, that the "information does not necessarily present a full account of overall global financial performance so it would be a mistake to draw any conclusions from these filings."

In August, Facebook - on the lookout for new revenue streams - opened up its network to gamblers wanting to play online via the service in the UK. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.