Google facing bigger tax bill

TECH companies could be forced to hand over more of the cash they make in the UK as part of a crackdown on firms such as Google and Facebook.

The Treasury is considering a raft of measures that would scrap the current ways of charging corporation tax on multinational tech firms.

These would aim to make the amount of tax paid by big companies such as Amazon, Google and Facebook better reflect the amount of money they make from sales in the UK.

It comes after big technology companies – mostly based in the US – faced strong criticism for raking in billions from sales but only paying tens of millions of pounds in taxes. At the moment they are able to do this legally because companies only pay tax on their profits, not their UK sales.