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Uber paid no UK corporation tax in 2014

Published 20/10/2015

An Uber spokesman said the firm was a
An Uber spokesman said the firm was a "significant net contributor" to the economy

Uber paid no corporation tax in the UK last year despite making a £866,302 profit, the company's latest accounts show.

A spokesman for the taxi-hailing service denied it had used any loopholes and insisted it had paid "every penny of tax that is due".

The annual statement for Uber London Limited shows it had incurred a total tax bill of £22,134. However this was listed as a 'deferred tax', which can be rolled over from previous years and into future tax periods, meaning the company technically paid no corporation tax in 2014.

The Uber spokesman added: "With corporation tax, past losses offset current and future profits - as is the case with Uber which made losses in the UK in previous years. This is an accounting principle to encourage investment that dates back to Benjamin Disraeli. It is not a loophole."

It comes a week after Facebook revealed it paid just £4,327 corporation tax in the UK in 2014. A string of multinational firms have been criticised in recent months for taking steps to legally avoid corporation tax.

TaxPayers' Alliance chief executive Jonathan Isaby said such cases would keep arising until the Government took steps to level the playing field for companies.

He said: "We will keep reading about big companies like Uber paying a pittance in tax until politicians get a grip on our maddeningly complex tax code.

"The system for taxing companies was designed decades ago and is now totally unsuitable for the modern, digital economy. It is time for politicians to stop their pointless moralising and fundamentally reform the tax code so all companies can compete on a level playing field."

Meanwhile Uber is also set to launch a service for disabled passengers in London.

It said more than 100 of its most experienced drivers have signed up to the uberAssist scheme.

Those needing it can request the service by typing ASSISTUK into the promotion screen on Uber's app.

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