Uber paid ZERO corporation tax last year – despite £11.3 million turnover
Uber didn’t pay corporation tax on last year’s profits despite making a HUGE £11.3 million in revenue.
The latest accounts for the taxi app firm show that it is the latest large company to legally exploit UK loopholes to avoid paying tax.
Uber’s UK arm raked in profits of £866,302 in 2014. £566,302 of this is subject to 21 per cent corporation tax but Uber said it does not have to pay this due to ‘losses made in previous years’.
The company is also allowed to transfer profits to its Netherlands branch (where taxes are lower) as it is the parent company in Europe.
Uber can also roll over its tax year after year by paying ‘deferred tax‘ – something the company appears to have paid in its 2014 accounts at £22,134.
Robert Leach, a tax expert, told The Sun: ‘It seems they could have avoided a significant amount of tax.’
An Uber spokesman told Metro.co.uk: ‘Corporation tax is paid on profits not revenue. And, as Mr Leach will know, past losses offset future profits. Deferred tax is an accounting principle that dates back to Benjamin Disraeli to encourage investment. It’s not a loophole.
‘We’re a young company – only three years’ old in the UK – that’s investing heavily. We’re 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.”
