Starbucks’ UK tax payment falls to £8 million

Starbucks faced protests after it was exposed for paying virtually no corporation tax in the UK since 1998

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15 December 2015

Coffee chain Starbucks paid £8.1 million in UK corporation tax in the year to September 27, its latest results show.

The figure was down on the £11.4 million paid the prior year.

However in 2014 as part of its commitment to pay £20 million in corporation tax over two years, Starbucks decided to forgo tax deductions on royalties, capital allowances and other deductions.

The £20 million paid to the taxman came after it was exposed for paying virtually no corporation tax in the UK since launching here in 1998.

The company faced protests following the revelations, but said it wanted to put the scandal behind it and start paying taxes regularly.

Starbucks UK also reported a jump in pretax profit to £34.2 million from £2 million.

It was helped by factors such as shop lease negotiations and a 3.8% like for like sales rise.

Kris Engskov, Starbucks EMEA president said: “The strategy to offer great customer service, provide new and exciting experiences for customers in our stores, and improve our operating model is delivering.”

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