Uber paid just £22,134 corporation tax in the UK

Published: Tuesday 20th October 2015 by The News Editor

Comments (0)

Uber is the latest company to risk public anger after paying just £22,134 corporation tax in the UK last year despite making a £866,302 profit here.

The taxi-hailing service was reportedly able to pay such a low sum as it legally transferred profits to its sister company in the Netherlands, where it would be liable for a lower rate of tax.

It comes one week after Facebook revealed it paid just £4,327 corporation tax in the UK in 2014. A string of multinational firms have been criticised in recent months for taking steps to legally avoid corporation tax.

An Uber spokesman denied the firm had used any loopholes and insisted it had paid “every penny of tax that is due”. He added that the firm was a “significant net contributor” to the economy.

“With corporation tax, past losses offset current and future profits – as is the case with Uber which made losses in the UK in previous years,” he said.

“This is an accounting principle to encourage investment that dates back to Benjamin Disraeli. It is not a loophole.”

“We are a young company – only three years old in the UK – that is investing heavily.

“We are a significant net contributor to the local economy everywhere we go, creating new opportunities for thousands of professional drivers.

“The lion’s share of every fare stays local, as it remains with the drivers who use Uber. And unlike the cash-in-hand past of this industry, we only take card payments so every fare is traceable and transparent.”

Meanwhile, Uber is set to launch a service for disabled passengers in London.

The minicab-hailing app said more than 100 of its most experienced drivers have signed up to the uberASSIST scheme.

Those needing it can request the service by typing ‘ASSISTUK’ into the promotion screen on Uber’s app.

Published: Tuesday 20th October 2015 by The News Editor

Comments (0)

Local business search