Netflix paid less than £400,000 in UK corporation tax in 2015

Popular: Netflix has 6 million UK subscribers
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Tom Powell14 October 2016

Netflix paid less than £400,000 in UK corporation tax last year, it has emerged.

The TV and film streaming service, which has almost 6 million subscribers in the UK, revealed yearly revenues of £36.5million in this county.

Pressure has been growing on US tech giants such as Apple and Google to increase their tax payments to HM Revenue and Customs.

Netflix, which produces original series such as Orange is the New Black and has 80 million global subscribers, is set to make £6.5million in total revenues this year.

But a Netflix spokesman told the Standard that its €441,775 UK tax bill - in euros because the parent company is in the Netherlands - is effectively a rate of 22 per cent.

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He said the £36.5million revenue booked in Britain is for the provision of marketing services and classifies all its UK employees as involved in marketing.

“In the UK, Netflix is financially contributing in different ways with corporate taxes, wages and tens of millions of pounds in VAT as well as funding dozens of UK productions for hundreds of millions of pounds,” said the spokesman.

“We have more than 30 UK projects in various stages of development. In addition to The Crown, other shows and movies include Black Mirror, Lovesick, or Brad Pitt’s War Machine movie.

"We are also the home for British shows such as Marcella, Crazyhead, River and Cuckoo outside the UK."

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