Netflix paid less than £400,000 in UK corporation tax last year on revenues of £37m

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Netflix streams TV shows including Stranger Things and House of Cards (Source: Getty)

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

Companies House accounts show the US firm paid €441,775 (£398,610) in UK corporation tax in the year to 31 December.

Netflix Services UK’s revenue for the year came in at €40.5m, while its profit before income tax was €1.99m.

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“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 pound,” a Netflix spokesman told the Guardian.

“We have more than 30 UK projects in various stages of development. In addition to The Crown, other shows and movies include Black Mirror … and Brad Pitt’s War Machine movie. An income tax charge of approximately €441,000 makes an effective tax rate of approximately 22 per cent.”

Netflix's global revenue for 2015 came in at just short of $7bn.

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Digital giants like Google and Facebook have incurred the wrath of many in the UK over their corporation tax contributions in recent years.

Earlier this month, Facebook reported it had paid £4.2m in UK corporation tax in 2015up from £4,327 the year before.

Google, meanwhile, was involved in a heated debate in the UK earlier this year over a deal to hand over £130m in unpaid corporation tax to HM Revenue & Customs.

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