Netflix pays NO tax – despite £700m UK turnover

NETFLIX paid no tax last year despite raking in nearly £700million from UK subscribers, its latest accounts show.

The video streaming service, which makes hits including royal period drama The Crown, instead received a tax credit worth around £51,000 in 2018.

It is the second year in a row the company handed nothing over to the Exchequer, despite vows by ministers to make technology giants pay more tax.

Critics slammed Netflix for using ‘opaque’ accounting practices and called for urgent reforms. It comes amid mounting anger over tax paid by tech giants including Amazon, Google, Facebook and Apple, which have been accused of using complex structures to minimise bills.

Last night shadow chancellor John McDonnell called for a crackdown to ensure Netflix paid its ‘fair share’.

He added: ‘People will find it incredible that a company operating on this scale pays so little tax and receives a rebate.’ Netflix boasts an estimated ten million UK customers, bringing in £693million from them last year, according to research by media watchdog Ofcom.

But accounts for Netflix Services UK Ltd, published yesterday, show the firm reported revenues of £42.6million in 2018, up from £23.9million the previous year.

This is because most of Netflix’s takings are funnelled to a European base in the Netherlands. The accounts also showed the firm reported a £2million profit, up from £1.1million in 2017, and bagged a £51,000 tax credit, down from £177,000 previously. It employed 29 British staff.

The company – which is ploughing £400million into shows made in Britain this year – is able to reduce bills partly through tax relief schemes run by the Government to encourage film and television companies to shoot in the UK.

It also emerged yesterday the firm is being investigated by tax authorities in Italy. Netflix said: ‘We pay all the taxes due in Italy and other countries around the world.’