Facebook (2)

Facebook will pay millions more worth of tax in the UK after abandoning its arrangement which saw most tax and profits diverted to Ireland.

The social media giant faced huge criticism and scrutiny last year when it was revealed that it paid less than £5,000 in corporation tax in the UK, despite paying staff bonuses worth £35 million.

Following a major overhaul of its tax systems, Facebook will no longer process its largest advertising sales through Ireland, according to the BBC. But its international headquarters will remain in Ireland, and its smaller advertising sales will still be processed in Ireland.

It is understood the new system will be brought in in April, with the first corporation tax bill - which is likely to see millions more go to HMRC - will come in 2017. It is not known roughly how much Facebook will pay. A company is not under any obligation to reveal the value of its business in the UK until 10% of its revenue is generated here.

In an internal message, seen by the BBC, Facebook said: "On Monday, we will start notifying large UK customers that from the start of April, they will receive invoices from Facebook UK and not Facebook Ireland.

"What this means in practice is that UK sales made directly by our UK team will be booked in the UK, not Ireland. Facebook UK will then record the revenue from these sales.

"In light of changes to tax law in the UK, we felt this change would provide transparency to Facebook's operations in the UK.

"The new structure is easier to understand and clearly recognises the value our UK organisation adds to our sales through our highly skilled and growing UK sales team."