{"id":3005,"date":"2018-10-08T09:31:25","date_gmt":"2018-10-08T09:31:25","guid":{"rendered":"http:\/\/www.styledeals.co.uk\/blog\/paypal-tax-bill-jumps-by-3-1m-after-review-by-hmrc\/"},"modified":"2018-10-08T09:31:25","modified_gmt":"2018-10-08T09:31:25","slug":"paypal-tax-bill-jumps-by-3-1m-after-review-by-hmrc","status":"publish","type":"post","link":"https:\/\/www.styledeals.co.uk\/blog\/paypal-tax-bill-jumps-by-3-1m-after-review-by-hmrc\/","title":{"rendered":"PayPal tax bill jumps by \u00a33.1m after review by HMRC"},"content":{"rendered":"\n
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Image copyright<\/span>
\n Getty Images<\/span><\/p>\n

<\/span><\/p>\n<\/figure>\n

PayPal’s UK subsidiary has agreed to pay an extra \u00a33.1m in tax following a review by HMRC. <\/p>\n

Research by the BBC’s Wake up to Money found that tax at the e-payments firm rose from \u00a3181,000 in 2016 to \u00a34.7m.<\/p>\n

In its newly-filed accounts, PayPal says: “HMRC has been reviewing the company’s direct tax position. <\/p>\n

“As a consequence, the company has agreed and settled its outstanding liabilities and as a result is not subject to any current enquiries.”<\/p>\n

Last week, Chancellor Philip Hammond raised the prospect of a new tax for large technology companies which have frequently been criticised for moving sales through other countries and paying modest amounts of tax in the UK.<\/p>\n

The Organisation for Economic Co-operation and Development is trying to tackle the problem but is struggling to reach a consensus among its 36 members.<\/p>\n

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<\/span><\/p>\n<\/figure>\n

During his speech at the Conservative Party Conference, Mr Hammond said: “The time for talking is coming to an end. The stalling has to stop. If we cannot reach agreement the UK will go it alone with a ‘Digital Services Tax’ of its own.”<\/p>\n

Twitter UK has also filed accounts showing a jump in corporation tax from \u00a3815,000 in 2016 to \u00a32.4m last year.<\/p>\n

However, the company said this reflected an adjustment relating to previous years, rather than any involvement from HMRC.<\/p>\n

Its UK profits fell 3.7% to \u00a32.5m on revenue 2.5% lower at \u00a377.4m.<\/p>\n

Profit rise<\/h2>\n

PayPal UK books revenues from the services it provides to other group companies rather than income from UK transactions.<\/p>\n

The division saw revenue rise by 8% to \u00a336.7m last year, while pre-tax profit jumped to \u00a37.8m from \u00a31.2m.<\/p>\n

The extra tax was covered by a \u00a34.5m payment from an “affiliated entity”.<\/p>\n

During the same year, its parent company PayPal Inc, which is listed on the Nasdaq stock exchange in New York, reported revenues of $13bn and pre-tax income of $2.2bn.<\/p>\n

It did not give a breakdown for the UK or Europe.<\/p>\n

In response to the Paypal tax review, an HMRC spokesman said: “We do not comment on identifiable taxpayers.<\/p>\n

“We make sure that large businesses, just like everyone else, pay all the taxes due under UK law and we don’t settle for less.”<\/p>\n

A spokesman for PayPal Europe, Middle East and Africa declined to comment.<\/p>\n<\/p><\/div>\n


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Source<\/a> by [author_name]<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Image copyright Getty Images PayPal’s UK subsidiary has agreed to pay an extra \u00a33.1m in tax following a review by HMRC. Research by the BBC’s Wake up to Money found that tax at the e-payments firm rose from \u00a3181,000 in 2016 to \u00a34.7m. In its newly-filed accounts, PayPal says: “HMRC has been reviewing the company’s … <\/p>\n","protected":false},"author":0,"featured_media":3006,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3005","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/3005","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=3005"}],"version-history":[{"count":0,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/3005\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media\/3006"}],"wp:attachment":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=3005"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=3005"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=3005"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}