London Daily

Focus on the big picture.
Monday, Mar 16, 2026

Starbucks pays just £5m UK corporation tax on £95m gross profit

Starbucks pays just £5m UK corporation tax on £95m gross profit

‘Administrative expenses’ of £78m, including royalties, helped bring taxable profits down to £13m last year
Starbucks paid just £5.4m in UK corporation tax last year despite making a gross profit of £95m.

The company, which has faced years of heated criticism for paying very little tax in the UK, paid out £26.5m in royalty payments, almost five times as much the UK tax it paid, according to accounts filed at Companies House.

The royalty payments helped Starbucks, which is run by the billionaire Howard Schultz, make a global profit of $4.9bn (£3.7bn) in the same period.

The UK division collected sales of £328m from its 1,000 UK stores in the year to 3 October 2021, up from £243m in the previous year when shops were temporarily closed during the pandemic lockdown.

Starbucks Coffee Company (UK) made a £95.1m “gross profit” for the year, but after swallowing “administrative expenses” of £78m, its pre-tax profits were reduced to £13.3m, on which it paid £5.4m tax. A year earlier the company received tax credits of £4.4m after recording a pre-tax loss of £40.9m.

Starbucks said administrative costs included occupancy costs such as business rates, service fees, maintenance and utilities for stores and central costs required to run the UK business, including IT, marketing, and head office costs.

The UK arm of Starbucks has made cumulative losses after tax of more than £100m between 2010 and 2021, according to a Guardian analysis of its accounts. It reported a profit in only five out of 12 years, but tax experts say it is unclear whether they are a true reflection of the business.

Paul Monaghan, the chief executive of the Fair Tax Foundation, said: “Starbucks’ main UK subsidiary maintained its tradition of paying little corporation tax in the UK, and this was once again down to the payment of hefty royalty and licensing fees to entities further up the corporate group.

“The numbers now have a certain predictability.”

In 2012, it was revealed that Starbucks had paid just £8.6m in taxes on £3bn in UK sales since 1998, when it launched its first UK coffee shop.

The company declined to comment on the royalty payments or the reasons for its very low pre-tax profits in the UK.

Separate accounts show that Starbucks’ UK-based European business paid just $13m in tax last year, while paying the coffee giant’s parent company in Seattle a $164m dividend.

Starbucks Europe, the Middle East and Africa (EMEA) collected royalty payments of $237m in the year to 3 October. It made a pre-tax profit of $190m, and paid $13.1m in tax.

The company said the tax payment was low because “this dividend income has already been taxed in other jurisdictions before it is booked for accounting purposes as a profit in Starbucks EMEA Limited. As the income has been taxed already, it is exempt from further UK corporation tax charges.”

Starbucks EMEA, which collects royalties from 43 countries including the UK, has built up shareholder funds to more than $2tn.

Starbucks Corporation, the US parent company, made an “operating income” profit of $4.87bn in the year to 3 October 2021, on sales of $29bn.

Shultz, who transformed Starbucks from an 11-store Seattle chain he took over in 1986 into a global coffee empire, earlier this month announced that he was returning as interim chief executive. Shultz, who has built up an estimated $4bn fortune, is rejoining for his third stint as chief executive after the retirement of Kevin Johnson.
Newsletter

Related Articles

0:00
0:00
Close
Western Allies Urge Restraint as Israel Weighs Expanded Ground Operation in Lebanon
Trump Warns NATO Faces ‘Very Bad’ Future Without Stronger Allied Support in Iran Conflict
UK Minister Says Britain Not Bound to Support Every Demand From U.S. President
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
UK Set to Introduce Steel Tariffs of Up to 50 Percent in New Industrial Strategy
European Governments Decline Trump’s Call to Send Warships to Reopen Strait of Hormuz
Fears Over Iran Conflict Weigh on UK Consumer Confidence
Starmer Says UK Working With Allies on Hormuz Shipping Plan After Trump Raises Pressure
Iran War and Energy Shock Shake Britain’s Economy and Political Debate
Deadly Meningitis Outbreak at UK University Leaves Two Dead and Several Seriously Ill
Deadly Meningitis Outbreak at UK University Leaves Two Dead and Several Seriously Ill
King Charles and Queen Camilla Share Personal Tributes to Their Mothers on UK Mother’s Day
Prince William Honors Princess Diana with Mother’s Day Tribute
UK Economy Stalls in January as Households Cut Back on Eating Out
AI-Generated Singer Becomes Viral Voice for Iranians With New Anthem
London Private Club Founder Plans Exclusive Palm Beach Venue Near Trump’s Mar-a-Lago
Ed Davey Urges Britain to Build Fully Independent Nuclear Missile Capability
What the UK Covid Inquiry Is and How It Investigates Britain’s Pandemic Response
What the UK Covid Inquiry Is and How It Investigates Britain’s Pandemic Response
US Treasury Links British Polo Patrons to Alleged Venezuelan Oil Proceeds Laundering Scheme
Hundreds Gather in London Despite Ban on Annual Pro-Palestinian March
Two Dead and Multiple Students Seriously Ill After Invasive Meningitis Outbreak at UK University
UK Considers Deploying Ships and Mine-Hunting Drones to Reopen Strait of Hormuz
Starmer and Trump Discuss Urgent Need to Reopen Strait of Hormuz Amid Escalating Iran Conflict
Prince Harry and Meghan Markle’s Planned Australia Visit Draws Mixed Reaction From Local Communities
Trump Calls on France and UK to Help Safeguard Strait of Hormuz Shipping Route
Boris Johnson Labels Bitcoin a ‘Ponzi Scheme’, Sparking Debate in Crypto World
UK Considers Targeted Aid for Vulnerable Households as Energy Costs Rise
Stellantis Urges Immediate Review of UK Electric Vehicle Sales Targets
Home Office Reverses Course to Allow Some Dual Nationals to Enter UK Using EU Passports
Reform UK Proposes Replacing Top Civil Servants With Officials Aligned to Government Agenda
Netflix Adds Critically Acclaimed ‘Best Film of 2025’ With Perfect Rotten Tomatoes Score
‘The Sums Don’t Add Up’: UK Farmers Hit by Soaring Costs as Iran War Disrupts Global Supplies
Confidential UK Biobank Health Records Found Online After Researchers Accidentally Expose Data
Trump Urges Britain and Allies to Deploy Warships to Safeguard Strait of Hormuz
Trump Urges Britain and Allies to Deploy Warships to Safeguard Strait of Hormuz
Middle East War Highlights Strategic Importance of Strong UK–Ireland Cooperation
Weak Growth Signals UK Economy Was Faltering Even Before Middle East Energy Shock
Marks & Spencer Tops UK Fashion Retail Rankings as Most Considered Brand
United States Launches Trade Investigation Into Allies Over Forced Labour Practices
United States Launches Trade Investigation Into Allies Over Forced Labour Practices
Russia Accuses Britain Over Storm Shadow Strike as London Reaffirms Ukraine’s Right to Self-Defence
Russia Accuses Britain Over Storm Shadow Strike as London Reaffirms Ukraine’s Right to Self-Defence
Royal Navy to Acquire Twenty Uncrewed Surface Vessels for Autonomous Warfare Testing
Russia Summons British and French Envoys After Ukrainian Storm Shadow Strike on Strategic Facility
Starmer Confirms Britain Will Maintain Sanctions on Russia Despite U.S. Policy Shift
UK Moves to Refine AI Definition in Investment Security Reform
UK Economy Stalls in January as Growth Unexpectedly Falls to Zero
Asian Energy Security Tested as Strait of Hormuz Disruption Threatens Oil Supplies
×