An MP says that Netflix is taking UK taxpayers ‘for a ride’ by not paying its taxes

This is what one MP had to say about the tax situation regarding Netflix (Photo: Shutterstock)

Netflix has been accused of “superhighway robbery” by MP Margaret Hodge, citing figures from think tank Tax Watch UK.

With UK revenue for the streaming platform reaching an estimated £1 billion in 2019, Netflix has paid no tax in the UK and has enjoyed tax reliefs instead.

Tax abuse?

Dame Margaret Hodge told the House of Commons on 3 February that Netflix’s tax structure was “scandalous, intolerable, and unfair”.

Dame Margaret Hodge is the Labour MP for Barking as well as the chair of the All Party Parliamentary Group on Responsible Tax.

Tax Watch UK reported that in 2018, Netflix reported revenues of £43.3 million and profits of just £2 million at its main UK company (Netflix Services UK) and paid no tax.

In fact, Netflix actually received a tax credit under the creative industry tax relief scheme - despite the fact that Netflix will have made an estimated £860 million in revenues from UK customers.