Airbnb, the lodging web site, paid lower than £200,000 in UK company tax final yr regardless of amassing £657m of rental funds for property house owners.
The commissions the corporate earns within the UK are booked by its Irish subsidiary, but it surely additionally has two UK subsidiaries.
One unit made a pre-tax revenue, however the different didn’t incur UK company tax as a result of deductions resulted in a loss.
Airbnb stated in an announcement: “We observe the principles and pay all of the tax we owe.”
One of many British subsidiaries, Airbnb Funds UK, handles funds between landlords and travellers for international locations aside from the US, China and India.
That unit made a pre-tax revenue of £960,000 and paid £188,000 in UK company tax – £eight,000 lower than in 2015.
The opposite British subsidiary, Airbnb UK, markets the web site and app to British customers. It reported a £463,000 pre-tax revenue final yr however as a result of it gave shares to employees, that are tax-deductable, there was no company tax invoice.
Airbnb stated: “Our UK workplace supplies advertising and marketing providers and pays all relevant taxes, together with VAT. The Airbnb mannequin is exclusive and boosted the UK financial system by £three.46bn final yr alone.”
The tax preparations of different know-how giants have come underneath under closer scrutiny lately.
One of the crucial vocal critics has been EU competitors commissioner Margrethe Vestager. She has taken purpose on the likes of Apple, Amazon and others for the place they e-book the revenues and income of their European actions.
Bruno Le Maire, the French finance minister, has additionally requested why Airbnb paid tens of thousand of euros in French company tax regardless of a turnover within the tens of millions.
The corporate, based in San Francisco in 2008, has disrupted the lodge business by linking travellers with landlords who usually need to lease out a spare room or a whole property for short-term stays.
It has change into one of the profitable examples of the digital financial system, with an estimated worth of about $24bn.
Nonetheless, Airbnb has confronted a rising backlash in cities together with Barcelona, Berlin and Paris, the place politicians have taken steps to cease landlords renting properties to vacationers relatively than native residents.
Whereas Airbnb has lengthy been linked with a inventory market itemizing, it stays privately owned.
It takes a three% fee from landlords for every reserving, and likewise expenses charges to travellers.
Within the UK final yr Airbnb catered for five.9m travellers and had 168,000 listings.
Printed at Solar, 08 Oct 2017 17:32:52 +000zero