Twitter paid just £41,000 in corporation tax in the UK last year despite revenues soaring to more than £100 million for the first time.

The UK arm of the social media giant, which generates almost all of its income from advertising, revealed that its tax bill fell more than 98 per cent last year while pre-tax profits rose by almost half to £3.72 million.

The financial details were revealed in the annual accounts of Twitter UK Ltd, filed at Companies House this week.

They are likely to reignite the row over the low level of company tax paid to HMRC by Silicon Valley businesses such as Amazon and Facebook.

In last year’s Budget the then Chancellor Philip Hammond announced plans to introduce a two per cent “digital services tax” on tech giants in the UK from next April.

In its accounts Twitter UK, which is not paying a dividend, revealed that the lower level of tax was due to the timing of deferred tax credits and higher share- based payments to staff.