London Daily

Focus on the big picture.
Sunday, Mar 08, 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
UK Dentists Returned £1.3 Billion to Government as Shift Toward Private Care Accelerates
Expert Warns UK Must Build Emergency Food Stockpiles to Prepare for Climate Shocks or War
UK Plans Charter Flight to Evacuate British Nationals from Gulf as Regional Conflict Disrupts Air Travel
Families of Zimbabwe’s Liberation Fighters Call on Britain to Help Locate Skulls Taken During Colonial War
Iran’s Ambassador Warns Britain to ‘Be Very Careful’ Over Deeper Role in Expanding Middle East War
UK Military Leadership Defends Britain’s Defensive Role in Expanding Middle East Conflict
Four U.S. Strategic Bombers Arrive in Britain as Iran War Intensifies
Soham Murderer Ian Huntley Dies After Violent Attack in High-Security Prison
UK Lawmakers and Experts Condemn Scale of Overseas Human Remains Held in British Museums
Royal Navy Aircraft Carrier HMS Prince of Wales Placed on Standby for Potential Deployment
United Kingdom Confirms U.S. Military Using British Bases for Operations Targeting Iranian Missile Sites
Starmer Defends UK Role in Iran Conflict After Renewed Criticism from President Trump
Blue Owl Reveals £36 Million Exposure After Collapse of UK Lender Serving Wealthy Clients
UK Asylum Reform Plan Triggers Fierce Debate Over Border Control and Humanitarian Impact
US Stealth Bombers Head to UK Base as Trump Issues Stark Warning to Iran
UK Deputy Prime Minister Says Legal Case Could Exist for British Strikes on Iranian Missile Sites
Investigators Link Mysterious Parcel Fires Across Europe to Russian Intelligence Operation
Debate Intensifies Over Britain’s Legal Justification for US Military Operations Launched From UK Bases
Britain Faces Heightened Energy Price Risks as Iran-Linked Tensions Threaten Global Oil and Gas Supplies
British Counter-Terror Police Arrest Four Suspected of Spying on Jewish Community for Iran
Axel Springer Agrees $770 Million Deal to Acquire Britain’s Daily Telegraph
Iceland Supermarket Drops Trademark Challenge Against Icelandic Government in Long-Running Naming Dispute
UK Defence Secretary Visits Cyprus Following Scrutiny of Britain’s Response to Drone Attacks
Questions Grow Over Britain’s Military Readiness as Response to Iran Conflict Draws Scrutiny
UK Offers Failed Asylum Seeker Families Up to Forty Thousand Pounds to Leave Voluntarily
Saharan Dust Could Bring ‘Blood Rain’ to Parts of the UK as Weather Systems Shift
UK Deploys Additional Typhoon Fighter Jets to Qatar and Helicopters to Cyprus Amid Rising Middle East Tensions
Experts Urge Britain to Accelerate Renewable Energy Push as Global Conflicts Drive Up Costs
British Public Shows Strong Reluctance to Join Wider War in Iran
First UK Evacuation Flight Departs Middle East After Lengthy Delay
United Kingdom Imposes New Visa Requirements on Travelers from St. Lucia and Nicaragua
Iran Conflict Strains U.S.–U.K. Alliance as Trump and Starmer Clash Over Military Strategy
UK Interest Rates Could Rise Above Four Percent Again if Energy Shock Continues, Think Tank Warns
Starmer Defends Britain’s Iran Strategy as Badenoch Urges Stronger Military Support
Labour MP Says She Saw No Sign Husband Broke Law After Arrest in China Espionage Investigation
UK Jobless Rate Overtakes Italy’s for First Time in Years as Labour Market Weakens
United Kingdom Suspends Student Visas for Four Countries in Unprecedented Immigration Move
Campaigners Warn UK Student Visa Ban Could Push Migrants Toward Dangerous Channel Crossings
First U.K. Charter Flight for Stranded Nationals Set to Depart Oman Amid Middle East Crisis
France and United Kingdom Deploy Warships to Eastern Mediterranean as Middle East Conflict Escalates
U.K. Arrests Three Men Including Lawmaker’s Partner in Suspected China Espionage Investigation
Trump Says UK–US ‘Special Relationship’ Is Diminished Amid Middle East Dispute
UK Economic Forecasts Face Fresh Strain from Middle East Conflict and Rising Energy Costs
UK Reaffirms Close US Ties After Trump’s Public Criticism
Reeves Stresses Stability and Fiscal Discipline in UK Budget Update as Growth Outlook Shifts
UK Deploys Royal Navy Destroyer HMS Dragon to Cyprus After Drone Strike on RAF Base
Green Party Surges Past Labour in New UK Poll as Traditional Party Support Crumbles
Majority of Britons Oppose U.S. Use of UK Military Bases in Iran Conflict
UK Intensifies Evacuation Efforts from Oman, Working with Airlines to Boost Flight Capacity
Trump Condemns UK and Spain in Unusually Sharp Rift Over Iran Military Action
×