Netflix UK pays £3.2m 2019 tax
January 22, 2021
Netflix paid £3.2 million (€4.1m) in UK corporation tax in 2019. It billed an estimated £940 million (according to Ampere Analysis) to British subscribers in the period. It reported £120 million of revenue and pre-tax profit of £13 million on its operations here; the Netflix services for Europe and production.
Subscriber fees from its 11 million+ customers (2019) are channelled through a Netherlands entity. Taxwatch thinktank estimating says that in 2018 Netflix moved between £250 million and £330 million in profits from international operations outside the US, including the UK, to low-tax jurisdictions.
In November, Netflix said it intended to start declaring the £1 billion-plus in revenues it makes from British subscribers to the UK tax authorities from this year. This will let it count the high production investments it makes in the UK against subscription profits.
“We pay all the taxes required and are committed to paying an active role in supporting British production and creative talent for the long term,” a Netflix spokesperson told the Guardian.