Netflix, the US streaming service with hits including The Crown and Stranger Things, has revealed its annual revenue from UK subscribers for the first time – £1.4bn in 2021 – after changing its accounting practices in a move that also resulted in a big increase in its corporation tax payment to nearly £7m.
Netflix’s main UK business reported a 1,630% increase in revenues last year, up from just £79m in 2020, after abandoning the widely criticised practice of funnelling British income through other lower-tax European jurisdictions that is commonly utilised by Silicon Valley companies.
The latest UK accounts mark the first time that Netflix has not accounted for the £1bn-plus it makes annually from the monthly fees paid by British subscribers through separate accounts at its European headquarters in the Netherlands.
The move to reallocate all revenues from its 13.8 million UK subscribers to its British subsidiaries in turn fuelled an almost tripling of pre-tax profits from…
This article was written by Mark Sweney and originally published on www.theguardian.com