Claims made Caffe Nero 'hasn't paid a penny in corporation tax'

Malvern Gazette: Exterior of the Cafe Nero, The Shambles, Worcester. Pic Jonathan Barry 7.4.14 1514566703 (5198733) Exterior of the Cafe Nero, The Shambles, Worcester. Pic Jonathan Barry 7.4.14 1514566703 (5198733)

IT has been claimed popular British coffee house Caffe Nero hasn't paid a penny in UK corporation tax since 2007 despite racking up around £100million in profits.

According to the Daily Mail, the chain has become the latest big firm to come under fire over its tax affairs, in the wake of US behemoths Starbucks, Amazon, and Google.

The newspapers says analysis of the company's accounts show it has not paid any tax since its financial year ending May 31, 2007 and in the period since then it has notched up just under £1billion in sales and made profits before tax of around £100million.

It added the latest filings to Companies House show the privately-owned company made a £21.1million profit in the year ended May 31 2013 and generated £204.3million in sales.

However, the newspaper also said there was no suggestion Cafe Nero had been doing anything illegal.

Caffe Nero has two branches in Worcester - in the Shambles and Broad Street - and a further two in Malvern, with the outlets in Church Street and the retail park off Townsend Way.

The coffee giant caused a stir in the Faithful City when it bought a vacant shop in the Shambles in 2005 and proceeded to open the store despite planning officers telling them the unit had to be a shop.

They were officially given permission to trade in June 2007 after the city council decided it did not want to fight it through the courts because of the high costs.

It had lodged a retrospective planning application, despite occupying the unit for two years without approval anyway.

The site Caffe Nero currently occupies was originally earmarked as a cold food store rather than a coffee shop.

Comments (25)

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6:35pm Mon 7 Apr 14

brooksider says...

I love how these companies drive out local taxpaying businesses and nothing is done about it.
Instead of wasting millions on the bedroom tax, the Coalition would have been better off removing these HMRC approved tax dodging schemes.
I love how these companies drive out local taxpaying businesses and nothing is done about it. Instead of wasting millions on the bedroom tax, the Coalition would have been better off removing these HMRC approved tax dodging schemes. brooksider
  • Score: 17

6:49pm Mon 7 Apr 14

truth must out says...

brooksider wrote:
I love how these companies drive out local taxpaying businesses and nothing is done about it.
Instead of wasting millions on the bedroom tax, the Coalition would have been better off removing these HMRC approved tax dodging schemes.
Government won't do that because these companies fight back and people on benefits don't...............
[quote][p][bold]brooksider[/bold] wrote: I love how these companies drive out local taxpaying businesses and nothing is done about it. Instead of wasting millions on the bedroom tax, the Coalition would have been better off removing these HMRC approved tax dodging schemes.[/p][/quote]Government won't do that because these companies fight back and people on benefits don't............... truth must out
  • Score: 11

7:33pm Mon 7 Apr 14

pinkfluff says...

Loving both of you ^ right now :-)
Loving both of you ^ right now :-) pinkfluff
  • Score: 1

7:47pm Mon 7 Apr 14

The Villan says...

If this company and others like it are pursued by the Government, then they threaten to pull out causing numerous job losses, hence they Government backs down!
If this company and others like it are pursued by the Government, then they threaten to pull out causing numerous job losses, hence they Government backs down! The Villan
  • Score: 7

7:56pm Mon 7 Apr 14

voledog says...

Well done Daily Mail for exposing tax avoidance. Maybe someone should also tip them off about one Lord Rothermere who claims non-dom status to avoid paying tax. Lord Rothermere happens to own a certain newspaper called...the Daily Mail!
Well done Daily Mail for exposing tax avoidance. Maybe someone should also tip them off about one Lord Rothermere who claims non-dom status to avoid paying tax. Lord Rothermere happens to own a certain newspaper called...the Daily Mail! voledog
  • Score: 12

8:05pm Mon 7 Apr 14

New Kid on the Block says...

The Villan wrote:
If this company and others like it are pursued by the Government, then they threaten to pull out causing numerous job losses, hence they Government backs down!
If they did back out that would leave an opening for a local tax-paying company. I say call their bluff.
[quote][p][bold]The Villan [/bold] wrote: If this company and others like it are pursued by the Government, then they threaten to pull out causing numerous job losses, hence they Government backs down![/p][/quote]If they did back out that would leave an opening for a local tax-paying company. I say call their bluff. New Kid on the Block
  • Score: 12

9:59pm Mon 7 Apr 14

i-cycle says...

Many of the national and international chains use tax avoidance measures to boost profits. If done correctly its quite legal even if morally reprehensible. the result is that we all pay more tax for our services.

There is an alternative.

Boycott those chains that are into tax avoidance and support local 'home' grown businesses. They have a much stronger stake in their local community and the multiplier effect in terms of spending your hard earned money with them does more to support the local economy and create the local jobs we need.

There are certainly several locally owned and operated coffee shops in Worcester that we could be using more often.
Many of the national and international chains use tax avoidance measures to boost profits. If done correctly its quite legal even if morally reprehensible. the result is that we all pay more tax for our services. There is an alternative. Boycott those chains that are into tax avoidance and support local 'home' grown businesses. They have a much stronger stake in their local community and the multiplier effect in terms of spending your hard earned money with them does more to support the local economy and create the local jobs we need. There are certainly several locally owned and operated coffee shops in Worcester that we could be using more often. i-cycle
  • Score: 14

10:12pm Mon 7 Apr 14

Jabbadad says...

I feel that the reason that the governments haven't addressed these tax evasion is that somehow it makes sense to them for it to be as it is. Think what you like about this comment. But I still call it Evasion as I still call PlebGate Plebgate because of politics still unfinished.
I feel that the reason that the governments haven't addressed these tax evasion is that somehow it makes sense to them for it to be as it is. Think what you like about this comment. But I still call it Evasion as I still call PlebGate Plebgate because of politics still unfinished. Jabbadad
  • Score: 1

10:29pm Mon 7 Apr 14

Doogie 46 says...

The Daily Mail article also stated that Cafe` Nero DID pay £21million in VAT and £13 million in NI contributions - it doesn`t mention PAYE, presumably the employees don`t earn enough.
Apparently Starbucks, Google etc are merely doing what the EU allows (possibly encourages) them to do.
The Daily Mail article also stated that Cafe` Nero DID pay £21million in VAT and £13 million in NI contributions - it doesn`t mention PAYE, presumably the employees don`t earn enough. Apparently Starbucks, Google etc are merely doing what the EU allows (possibly encourages) them to do. Doogie 46
  • Score: -3

10:47pm Mon 7 Apr 14

i-cycle says...

This extract from an independent report in 2010 is rather damming. Given the recent revelations it does sort of pose questions as to how socially responsible such companies are, even if the convolute tax avoidance mechanisms used are technically rather than morally legal.
"Costa Coffee and Caffe Nero are failing to achieve even a basic standard of corporate social responsibility (CSR) reporting, according to a new report.
The research, undertaken by CSR analysts CleanAnalysis, scrutinised the sustainability credentials of three coffee chains, Caffe Nero, Starbucks and Costa Coffee, in areas like waste and recycling.

The report found that US giant, Starbucks, gave the most information but did not provide a UK breakdown in its CSR global report.

Caffe Nero was found not to provide any CSR information, either on its website or within its corporate reports. CleanAnalysis also said that Caffe Nero denied its requests for CSR information"

I'm sure I'm not the only one who will be seeking out local independents and supporting the local economy more.
This extract from an independent report in 2010 is rather damming. Given the recent revelations it does sort of pose questions as to how socially responsible such companies are, even if the convolute tax avoidance mechanisms used are technically rather than morally legal. "Costa Coffee and Caffe Nero are failing to achieve even a basic standard of corporate social responsibility (CSR) reporting, according to a new report. The research, undertaken by CSR analysts CleanAnalysis, scrutinised the sustainability credentials of three coffee chains, Caffe Nero, Starbucks and Costa Coffee, in areas like waste and recycling. The report found that US giant, Starbucks, gave the most information but did not provide a UK breakdown in its CSR global report. Caffe Nero was found not to provide any CSR information, either on its website or within its corporate reports. CleanAnalysis also said that Caffe Nero denied its requests for CSR information" I'm sure I'm not the only one who will be seeking out local independents and supporting the local economy more. i-cycle
  • Score: 4

7:02am Tue 8 Apr 14

Bruce1510 says...

The government is running scared on tax because big business without a favourable tax environment will vote with their feet. Supporting local business and voting with our feet is always a good thing but let's not kid ourselves - our economy needs these companies especially on the dying high streets that are struggling to attract custom against slick online operations. They also provide jobs which then contribute. A balance needs to be struck and any loopholes closed - they are businesses after all and exploiting loopholes made by our own legislation.
The government is running scared on tax because big business without a favourable tax environment will vote with their feet. Supporting local business and voting with our feet is always a good thing but let's not kid ourselves - our economy needs these companies especially on the dying high streets that are struggling to attract custom against slick online operations. They also provide jobs which then contribute. A balance needs to be struck and any loopholes closed - they are businesses after all and exploiting loopholes made by our own legislation. Bruce1510
  • Score: -3

8:28am Tue 8 Apr 14

green49 says...

If they did back out that would leave an opening for a local tax-paying company. I say call their bluff.
Absolutely agree with this comment, make companies pay the tax on the money they take in this country and that would be fair to everyong, also change the law so that any due tax from anyone is collected, i pay mine so should everyone else.
If they did back out that would leave an opening for a local tax-paying company. I say call their bluff. Absolutely agree with this comment, make companies pay the tax on the money they take in this country and that would be fair to everyong, also change the law so that any due tax from anyone is collected, i pay mine so should everyone else. green49
  • Score: 9

10:25am Tue 8 Apr 14

thesquirrel says...

People talk about seeking out independents but never name any. I want to put this record straight.

1. Chocolate Deli and Patisserie is the best independent in town. It is located on New Street.
2. Coffee Dough next to Primark.
3. Ginger Pig in the museum (not the other one) - nice venue.
People talk about seeking out independents but never name any. I want to put this record straight. 1. Chocolate Deli and Patisserie is the best independent in town. It is located on New Street. 2. Coffee Dough next to Primark. 3. Ginger Pig in the museum (not the other one) - nice venue. thesquirrel
  • Score: 7

10:30am Tue 8 Apr 14

Matthew Jenkins says...

The government does the minimum it can to track down tax evasion, partly because they're worried of scaring big businesses away and partly because many of them have links with these businesses.
An interesting statistic I saw yesterday was that there are 3250 staff at DWP investigating benefit fraud of £1.2bn, whilst there are 300 staff at HMRC investigating tax evasion of £70bn+.
The government does the minimum it can to track down tax evasion, partly because they're worried of scaring big businesses away and partly because many of them have links with these businesses. An interesting statistic I saw yesterday was that there are 3250 staff at DWP investigating benefit fraud of £1.2bn, whilst there are 300 staff at HMRC investigating tax evasion of £70bn+. Matthew Jenkins
  • Score: 9

10:58am Tue 8 Apr 14

i-cycle says...

thesquirrel wrote:
People talk about seeking out independents but never name any. I want to put this record straight.

1. Chocolate Deli and Patisserie is the best independent in town. It is located on New Street.
2. Coffee Dough next to Primark.
3. Ginger Pig in the museum (not the other one) - nice venue.
Thanks Squirrel.

Pump House Environment Centre is brilliant.

Cafe Severn and Diglis Hotel have good views over the river.
[quote][p][bold]thesquirrel[/bold] wrote: People talk about seeking out independents but never name any. I want to put this record straight. 1. Chocolate Deli and Patisserie is the best independent in town. It is located on New Street. 2. Coffee Dough next to Primark. 3. Ginger Pig in the museum (not the other one) - nice venue.[/p][/quote]Thanks Squirrel. Pump House Environment Centre is brilliant. Cafe Severn and Diglis Hotel have good views over the river. i-cycle
  • Score: 4

11:16am Tue 8 Apr 14

New Kid on the Block says...

It seems that lots of people out there seem to agree with me about calling these big corporate bullies bluff.
I have found that the best food and drink generally comes from small local independent firms. The same thing applies to supermarkets. Big is not always better. In another article Asda are planning to expand and claim that they will create 12,000 jobs. Where will these jobs come from? They will be at the expense of other firms. In order to create these jobs it is entirely possible that more than 12,000 jobs will be lost elsewhere.
Also firms like Asda have the effect of sucking money out of the local economy. In the case of locally owned firms any profit made tends to be spent locally. With big firms a lot of the profit will be paid to people who certainly don't live locally and may not even live in this country.
Which is best for the economy, money tending to circulate locally creating more local jobs or money being sucked abroad?
Asda is owned by Walmart. Lidl is German. Tesco has it's head office in Switzerland. Morrison is British owned but is in financial difficulties.
It seems that lots of people out there seem to agree with me about calling these big corporate bullies bluff. I have found that the best food and drink generally comes from small local independent firms. The same thing applies to supermarkets. Big is not always better. In another article Asda are planning to expand and claim that they will create 12,000 jobs. Where will these jobs come from? They will be at the expense of other firms. In order to create these jobs it is entirely possible that more than 12,000 jobs will be lost elsewhere. Also firms like Asda have the effect of sucking money out of the local economy. In the case of locally owned firms any profit made tends to be spent locally. With big firms a lot of the profit will be paid to people who certainly don't live locally and may not even live in this country. Which is best for the economy, money tending to circulate locally creating more local jobs or money being sucked abroad? Asda is owned by Walmart. Lidl is German. Tesco has it's head office in Switzerland. Morrison is British owned but is in financial difficulties. New Kid on the Block
  • Score: 5

11:34am Tue 8 Apr 14

i-cycle says...

New Kid on the Block wrote:
It seems that lots of people out there seem to agree with me about calling these big corporate bullies bluff.
I have found that the best food and drink generally comes from small local independent firms. The same thing applies to supermarkets. Big is not always better. In another article Asda are planning to expand and claim that they will create 12,000 jobs. Where will these jobs come from? They will be at the expense of other firms. In order to create these jobs it is entirely possible that more than 12,000 jobs will be lost elsewhere.
Also firms like Asda have the effect of sucking money out of the local economy. In the case of locally owned firms any profit made tends to be spent locally. With big firms a lot of the profit will be paid to people who certainly don't live locally and may not even live in this country.
Which is best for the economy, money tending to circulate locally creating more local jobs or money being sucked abroad?
Asda is owned by Walmart. Lidl is German. Tesco has it's head office in Switzerland. Morrison is British owned but is in financial difficulties.
The local economic multiplier effect provides an exceptionally strong case for buying locally and supporting the smaller independent businesses. It demonstrates how every £1 spent locally can have an even greater effect in supporting the local economy, creating jobs and supporting more sustainable local communities.

Its a concept that any party can/should support. in fact it underpins the reasons why the Conservative administration with Chamber support adopted the www.Finditinworceste
rshire.com approach to procurement from a Labour council.

By buying local and supporting more independents you're actually helping yourself and your local community.

For a more detailed explanation why it makes economic as well as social and environmental sense to support local businesses have a look at www.pluggingtheleaks
.org
[quote][p][bold]New Kid on the Block[/bold] wrote: It seems that lots of people out there seem to agree with me about calling these big corporate bullies bluff. I have found that the best food and drink generally comes from small local independent firms. The same thing applies to supermarkets. Big is not always better. In another article Asda are planning to expand and claim that they will create 12,000 jobs. Where will these jobs come from? They will be at the expense of other firms. In order to create these jobs it is entirely possible that more than 12,000 jobs will be lost elsewhere. Also firms like Asda have the effect of sucking money out of the local economy. In the case of locally owned firms any profit made tends to be spent locally. With big firms a lot of the profit will be paid to people who certainly don't live locally and may not even live in this country. Which is best for the economy, money tending to circulate locally creating more local jobs or money being sucked abroad? Asda is owned by Walmart. Lidl is German. Tesco has it's head office in Switzerland. Morrison is British owned but is in financial difficulties.[/p][/quote]The local economic multiplier effect provides an exceptionally strong case for buying locally and supporting the smaller independent businesses. It demonstrates how every £1 spent locally can have an even greater effect in supporting the local economy, creating jobs and supporting more sustainable local communities. Its a concept that any party can/should support. in fact it underpins the reasons why the Conservative administration with Chamber support adopted the www.Finditinworceste rshire.com approach to procurement from a Labour council. By buying local and supporting more independents you're actually helping yourself and your local community. For a more detailed explanation why it makes economic as well as social and environmental sense to support local businesses have a look at www.pluggingtheleaks .org i-cycle
  • Score: 2

12:22pm Tue 8 Apr 14

Andy-Apache says...

I expect the lovers of polo necks and thin framed spectacles will still be seen in there drinking the overpriced gritty cack that these chains serve up.
I expect the lovers of polo necks and thin framed spectacles will still be seen in there drinking the overpriced gritty cack that these chains serve up. Andy-Apache
  • Score: 3

5:53pm Tue 8 Apr 14

Jabbadad says...

Andy-Apache, JUST LOVE YOUR POSTING. ha ha
Andy-Apache, JUST LOVE YOUR POSTING. ha ha Jabbadad
  • Score: 1

8:54pm Tue 8 Apr 14

Small Town says...

Neither has Qantas... Not in the UK, I don't get what the problem is here?
Neither has Qantas... Not in the UK, I don't get what the problem is here? Small Town
  • Score: -4

8:57pm Tue 8 Apr 14

Peter WR5 says...

Indeed, there is no need to insult one's digestion with the brown-coloured diluted sludge masquerading as coffee that is served by some of the chains.

To the indies in WR1 mentioned above, I would add that top of my list come House of Coffee (High St, near the Elgar statue) and My Coffee (The Cross).
Indeed, there is no need to insult one's digestion with the brown-coloured diluted sludge masquerading as coffee that is served by some of the chains. To the indies in WR1 mentioned above, I would add that top of my list come House of Coffee (High St, near the Elgar statue) and My Coffee (The Cross). Peter WR5
  • Score: 3

1:22pm Fri 11 Apr 14

themooman says...

i think nero should just be left to their own devices - they arent harming anyobdy so they shouldnt have to pay corp tax
i think nero should just be left to their own devices - they arent harming anyobdy so they shouldnt have to pay corp tax themooman
  • Score: -8

11:42am Sat 12 Apr 14

Matthew Jenkins says...

There is a petition started by the group Sum of Us to demand that Caffe Nero pay their tax here:
http://action.sumofu
s.org/a/caffe-nero-t
ax/?akid=4815.222913
4.lITXej&rd=1&sub=fw
d&t=1
There is a petition started by the group Sum of Us to demand that Caffe Nero pay their tax here: http://action.sumofu s.org/a/caffe-nero-t ax/?akid=4815.222913 4.lITXej&rd=1&sub=fw d&t=1 Matthew Jenkins
  • Score: 2

2:05pm Sat 12 Apr 14

Adon3117 says...

thesquirrel wrote:
People talk about seeking out independents but never name any. I want to put this record straight.

1. Chocolate Deli and Patisserie is the best independent in town. It is located on New Street.
2. Coffee Dough next to Primark.
3. Ginger Pig in the museum (not the other one) - nice venue.
I vouch for the squirrel. Coffee Dough has to be one of the best. However there are other independents about that are also very good compared to the chains. It's disappointing that the council still allowed Caffe Nero to open without planning permission. I'm pretty sure that if that had of been a local independent who hadn't applied for planning permission, they would get shut down instantly. It seems to be a problem with one rule for one company, another rule for another company.
[quote][p][bold]thesquirrel[/bold] wrote: People talk about seeking out independents but never name any. I want to put this record straight. 1. Chocolate Deli and Patisserie is the best independent in town. It is located on New Street. 2. Coffee Dough next to Primark. 3. Ginger Pig in the museum (not the other one) - nice venue.[/p][/quote]I vouch for the squirrel. Coffee Dough has to be one of the best. However there are other independents about that are also very good compared to the chains. It's disappointing that the council still allowed Caffe Nero to open without planning permission. I'm pretty sure that if that had of been a local independent who hadn't applied for planning permission, they would get shut down instantly. It seems to be a problem with one rule for one company, another rule for another company. Adon3117
  • Score: 2

7:21pm Sat 12 Apr 14

i-cycle says...

I note with interest that the Government has announced today that it will be increasingly the legal penalties for individuals and possibly introducing custodial sentences for those who try to avoid tax by moving their money abroad.

Why aren't they clamping down on companies that do the same? Too many mates in the City and financial backers for the Conservatives?

Its just the same with tackling fraud. the main focus is on the undeserving poor rather than the rich fat cats with convolute tax avoidance schemes.
I note with interest that the Government has announced today that it will be increasingly the legal penalties for individuals and possibly introducing custodial sentences for those who try to avoid tax by moving their money abroad. Why aren't they clamping down on companies that do the same? Too many mates in the City and financial backers for the Conservatives? Its just the same with tackling fraud. the main focus is on the undeserving poor rather than the rich fat cats with convolute tax avoidance schemes. i-cycle
  • Score: 2

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