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Netflix to declare its true UK revenue

Think tank claims the streamer has been under reporting its revenue

Netflix has confirmed it will begin reporting its true UK revenue from next year, after coming under fire that it was dodging paying tax.

Think tank Tax Watch said the streamer has been significantly under-reporting its revenue in the UK.

Through holding company Netflix Services UK, the streaming company reported 2018 revenue of just £43 million. It gets complicated, because the holding company also provides services to Netherlands-based Netflix International.

Tax Watch said that Netflix’s real UK revenue for 2018 is closer to £860 million.

Netflix responded by saying that UK revenue will more directly broken out in future earnings reports.

“As Netflix continues to grow in the UK and in other international markets we want our corporate structure to reflect this footprint,” a Netflix spokesman told The Guardian. “So from next year, revenue generated in the UK will be recognised in the UK, and we will pay corporate income tax accordingly.”