Netflix UK earned 500 m but most revenues are booked through Netherlands HQ
The US company which has a market capitalisation of $174 bn( PS131bn) is bigger than Disney and almost six times the value of Sky. It booked a pretax earning of only EUR1. 2m in the UK last year.
The company said it constructed EUR2 6.8 m in revenue in the UK last year. However, with more than 8 million customers signed up by the end of last year– paying from PS5. 99 to PS9. 99 a month with PS7. 99 by far the most common package– Netflix UK took home about PS500m( after sales tax) from British devotees last year, according to Ampere Analysis.
Netflix reports low revenue figures in the UK because, similar to fellow US tech monsters such as Google and Amazon, who also pay minimal tax, it posts the British running as a service arm for its headquarters elsewhere in Europe. In Netflix’s case its revenues from subscribers are booked in the Netherlands.
The company, Netflix Service UK, is described as a” member of the Netflix corporate family and furnishes marketing and other support services to Netflix International BV “.
Netflix said it received the rebate because it attained Brad Pitt’s War Machine in the UK. The UK government offers an attractive tax credit scheme to seduce the makers of cinemas and high-end TV shows to the UK.
The company’s reports demonstrate Netflix immediately utilizes 14 UK staff- four in administration and 10 in marketing- who were paid a combined EUR4. 4m. This works out to EUR3 14,000 each, including a healthy EUR4 22,000 split between them relating to share-based pays.
The company mentioned staff numbers have swelled to 37 to date and will make 60 by the end of the year as it opens a new UK office next month.
It pointed out that it is a big investor in the wider UK creative economy, with more than 20,000 casting, crew and extras set to work on Netflix original and co-productions this year.
” We are investing hundreds of millions in the UK entertainment industry, with close to 40 projects under way this year including new seasons of The Crown and Black Mirror and co-productions with British broadcasters ,” a spokesman said.
” Netflix is contributing to the UK economy in many different ways, including making significant amounts of VAT for the UK government through the provision of our services to UK-based subscribers .”
The US company has another procedure in the UK- Netflix Studios UK- put in in March, which will not file its first reports until next year.
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