Coca Cola, that well known beverage company who go with the slogan – “Taste the feeling,” have just got into the coffee game.
No, they are not releasing a new coffee brand…what they are doing is taking over Costa Coffee, that well known coffee shop in our towns and cities.
Word on the street is that Costa Coffee are obsessive about paying their taxes and making sure HMRC get every single penny.
In fact, last year it was reported Costa Coffee had profits of £100 million, and out of those profits they paid HMRC £24.7 million. Which is more than 20%, of course.
This has led some pundits to call Costa Coffee “the taxmans favourite coffee shop,” although those same pundits are now wondering if this friendship will last much longer.
Coca Cola are a company from across the pond. An American company. The kind of company that doesn’t usually get on with the tax man here in the UK.
These American companies are notorious for paying almost no tax, something which has not escaped the attention of one MP.
Peter Kyle, who is an MP on the Commons Business Committee, has warned Coca Cola that avoiding their tax duties will not be tolerated.
Coca Cola shelled out £3.9 billion pounds for Costa Coffee, so they are no doubt very keen to start recouping some of that money.
It wouldn’t surprise me if hot shot accountants from New York City have already taken over the accounting division at Costa Coffee HQ. How much longer will they continue paying over £20 million quid in tax ever year? Something tells me it won’t be long.
If I’m right then it will immediately put Coca Cola at odds with HMRC and MP’s. Who knows exactly how this is all going to play out.
The one thing I do know is that Costa Coffee will be continued to be loved by millions of British people.
Contractors, freelancers, business owners, and gig workers…they all head in to Costa at the beginning of a busy morning to get their caffeine shot for the day. Some even do a bit work while drinking their coffee, with their laptop or tablet.
I’m sure that Costa Coffee will continue to go from strength to strength, and even if HMRC and Coca Cola go to war, I’m sure it won’t stop British workers from enjoying their morning cup of coffee.