Starbucks first as it pays £5m tax
Published 24/06/2013 | 04:20
Coffee chain Starbucks has paid corporation tax in the UK for the first time since 2008, the company has announced.
The firm's cafes are a familiar sight on streets across the country but Starbucks told MPs last year it had made a loss for 14 of the 15 years it has operated in the UK, achieving just a small profit in 2006.
But under pressure from politicians as well as the public, the company committed to pay £20m in corporation tax over two years and the Exchequer has now received the first £5m.
A Starbucks spokeswoman said: "Six months ago, we felt that our customers should not have to wait for us to become profitable before we started paying UK corporation tax. We listened to our customers in December and so decided to forgo certain deductions which would make us liable to pay £10m in corporation tax this year and a further £10m in 2014.
"We have now paid £5m and will pay the remaining £5m later this year.
"We are also undertaking measures to make Starbucks profitable in the UK."