Netflix paid a mere £5 million in UK company tax final 12 months, regardless of incomes greater than £1.3 billion in Britain.
The US streaming big used a authorized accounting loophole to keep away from an estimated £49 million in UK taxes by diverting money to the Netherlands.
Netflix’s UK arm took a record-breaking £1.38 billion from British subscribers final 12 months – however funnelled most of this overseas earlier than it might be taxed.
Its 2021 accounts reveal that it transferred £1.24 billion – of which an estimated £260 million was pure revenue – to Dutch-registered Netflix Worldwide BV ‘per a distribution settlement’.
Netflix used a authorized accounting loophole to keep away from an estimated £49 million in UK taxes by diverting money to the Netherlands
The authorized transfer successfully diminished the corporate’s UK company tax fee on its income from the usual 19 per cent to below 2 per cent – lowering its invoice from round £54 million, to simply £5.2million.
Tory MP Nigel Mills, of the truthful tax all-party parliamentary group, stated it appeared as if Netflix was ‘not paying a good quantity of tax within the UK’, however the firm insisted it invested ‘extra in manufacturing’ right here than ‘anyplace exterior of North America’.
