Coffee giant Starbucks today said it expects to pay “somewhere in the range of £10m” in UK corporation tax for each of the next two years.

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The announcement comes after it emerged Starbucks paid just £8.6m in corporation tax in 14 years of trading in Britain and nothing in the last three years.

Starbucks UK managing director Kris Engskov told the London Chamber of Commerce that changes to its tax arrangements will see the firm pay above what is required by law.

Mr Engskov said the proposal had not been discussed with HM Revenue & Customs, adding: “With the backdrop of these difficult times, in the area of tax, our customers clearly expect us to do more.”

4 comments

  • Far too little and too late too. They are still sending large profits to lower taxation countries to the detriment of UK. Not the case in nthis instance but why is Uk still allowing so mnay of our companies to foreign buyers and effectively exporting tax income which we all have to pay for. Few other countries are that daft to allow this to happen.

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    andy

    Thursday, December 6, 2012

  • they possibly owe 10 times that they had paid at correct rate and not moved it overseas yes it may be perfectly legal but its morally aberrant and we should change tax laws so these mega companies cant do this any-more if you earn it here you pay the tax here.

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    MrB

    Thursday, December 6, 2012

  • Tax avoidance... How can it be right to have a law to say that a company or person is duty bound to pay tax. Then government say it is legal to avoid paying it.. What crazy twisted sort of government laws do those that bother to vote ... And vote for this to continue... It does not take a lot of logic , to know this is blatant discrimination to the rest of us on P. A. Y. E that are forced to pay their tax due... ... So why the public except this discrimination against them is totally mad and to ever vote again for more of the same... Is insanity beyond stupidity... The only way to put it...!

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    Lionel

    Sunday, December 9, 2012

  • This token gesture won't end the recession. Boycott them, that's the answer. Go local, small, non-franchised, family owned and run, etc. There's a really nice competitor venue in Norwich's Surrey Street. £10 million is still only 2.5% of their UK sales!

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    Police Commissioner ???

    Thursday, December 6, 2012

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