Caffe Nero pays no tax despite a £25m profit

FURIOUS MPs last night accused Caffe Nero of playing the system after it emerged the company did not pay a penny of corporation tax yet again last year.

Despite making a profit of £25.5million, the British-based firm avoided a £5.1million tax bill after claiming its holding company made a £24million loss. Parent company Rome Pikco’s accounts claimed the loss was down to ‘arm’s length interest payments to banks’, adding: ‘Therefore no entity within the group was due to pay tax for the year.’

Caffe Nero gave the same excuse for paying no tax last year when it announced a £23.5million profit for 2015, but Rome Pikco claimed a £28.4million loss. The firm, which has 613 shops in the UK and Ireland, has not paid UK corporation tax since 2007, despite generating more than £1billion in sales over that period.

Labour MP John Mann said: ‘Caffe Nero is taking business from decent people running cafes who are paying their tax properly. This is just ripping off the taxpayer. HMRC needs to gets its act together. It’s just a farce.’

Tory MP Charlie Elphicke said: ‘It is unacceptable that large companies take money from British customers and do not contribute to the cost of public services.’

There is no suggestion Caffe Nero has done anything illegal. A spokesman said: ‘Overall, the group of companies that includes Caffe Nero did not make a taxable profit in the year to May 31, 2016.’

An HMRC spokesman said: ‘Large businesses must pay the tax that is due. Everyone must play by the same rules.’