Following a recent tax crackdown on high-profile multinationals who have been avoiding corporation tax,  Starbucks has bowed to pressure and agreed to pay over £10 million in UK tax.

MPs accused the US firm of acting ‘immorally’ after it emerged that it has paid no corporation tax last year after recording no taxable profits.

The new payment of £10 million pounds will be seen as a victory for the Government, but is only a tiny proportion of the profits Starbucks generates in the UK.

Although the HMRC is receiving extra funding to track down companies practicing tax evasion or aggressive tax avoidance, the Chancellor George Osborne has announced in the Autumn Statement that the government plans to cut overall corporation tax, taking it down by 1% to 21%.

Back to Top