How Netflix paid only £4million in UK tax last year despite earning £1billion from British subscribers as lockdowns kept millions at home glued to screens
- The US streaming giant saw after-tax profits from its UK business rise to £15.2 million from around £9.8million the previous year
- Netflix also added 2 million subscribers in Britain, taking its total to around 13 million
- The firm also revealed the expansion of its UK production operation, with the number of employees in Britain rising to 274 last year from 29 in 2017
Netflix paid only around £4million in UK tax last year despite raking in £1billion from British subscribers.
The US streaming giant, which had its best year in 2020 as lockdowns kept millions at home glued to screens, saw after-tax profits from its UK business rise to £15.2million from around £9.8million the previous year.
The company also added 2million subscribers in Britain, taking its total to around 13million, according to The Guardian.
It follows the success of several UK-made Netflix productions including the steamy period drama Bridgerton, one of the platform’s most successful series
Netflix’s earnings from UK customers are funnelled through three separate British entities into an international business headquartered in the Netherlands.
But in January it said it would start declaring its UK revenues to HMRC.
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Results reported by the firm also revealed the rapid expansion of its UK production operation, with the number of employees in Britain rising to 274 last year from 29 in 2017.
It follows the success of several UK-made Netflix productions including the steamy period drama Bridgerton, one of the platform’s most successful series.
Netflix paid only around £4million in UK tax last year despite raking in £1billion from British subscribers (stock image)
Netflix has signed long-term lease contracts with two Surrey-based studios, Shepperton and Longcross, which between them have been used in the production of several blockbuster films including Skyfall, War Horse and Alien.
The company is also looking to expand its content library by snapping up the rights to British classics. Last month, it purchased the works of famed children’s author Roald Dahl in its biggest content deal to date.
Netflix’s expansion into both production and content comes as it looks to fend off challenges to its dominance of the streaming market by deep-pocketed rivals such as Disney and Amazon.
