Facebook restructures UK business model

Facebook is changing its business arrangements so that profits arising from UK advertising revenues will be taxed in the UK.

A Facebook spokesperson said: ‘We will start notifying large UK customers that from the start of April they will receive invoices from Facebook UK and not Facebook Ireland. This means in practice is that UK sales made directly by our UK team will be booked in the UK not Ireland. Facebook UK will then record the revenue from these sales.

‘In light of changes to tax law in the UK we felt this change would provide transparency to Facebook’s operations in the UK.’

Calling this a success for the Treasury Paul Smith tax partner at Blick Rothenberg LLP said: ‘It is likely that the company’s decision to change its business arrangements was influenced by the UK’s introduction of the diverted profits tax in 2015....