Directors at sandwich chain Pret A Manger have dig at firms that avoid paying tax because of way they are structured

By Sarah Bridge, Financial Mail on Sunday

Published: 16:04 EST, 12 September 2015 | Updated: 16:04 EST, 12 September 2015

Directors at sandwich chain Pret A Manger, which prides itself on its ethical stance, have had a dig at firms that avoid paying tax because of the way they are structured.

In its latest annual report, the firm said: ‘Pret does not take an aggressive stance in its interpretation of tax legislation, and does not use “tax havens” to reduce the group’s tax liability nor does Pret use marketed or aggressive tax avoidance schemes.’

Tasty: The latest accounts for Pret’s parent firm, PAM Group, show sales grew from £510 million to £594 million for the year to January 1, 2015

Tasty: The latest accounts for Pret’s parent firm, PAM Group, show sales grew from £510 million to £594 million for the year to January 1, 2015

Two coffee-chain rivals have been heavily criticised for their policies. Starbucks came under fire when it said it had paid only £8.5 million in corporation tax since launching in Britain, despite sales of £3 billion, and only started recording a profit in 2014. 

And Caffè Nero has not paid UK corporation tax since 2008 because its business is based for accounting purposes in Luxembourg and the Isle of Man.

The latest accounts for Pret’s parent firm, PAM Group, show sales grew from £510 million to £594 million for the year to January 1, 2015, yielding an operating profit of £27.4 million, but interest on loans turned this into a pre-tax loss of £25.5 million. However, the company paid £5.7 million in corporation tax.