Netflix Faces a Tax Check in the UK
British tax watchdog HMRC is digging into Netflix’s tax arrangements. The streaming titan hasn’t given the details of why it’s under the lens, but a spokesperson said, “HMRC routinely audits UK firms and we’re working through this typical review.” We’re still waiting for HMRC’s official response.
Why the Heat?
It’s not just Netflix. Big tech firms are leading the charge, and the UK Chancellor Philip Hammond has hinted at a new “digital services tax” that could hit revenues from companies like Netflix.
Key Numbers
- Market cap: ~£97.5 bn ($125 bn)
- Last year pre‑tax profit: $485 m
- Corporation tax paid: $135 m
- Tax paid overseas: $88 m (not in the US)
What’s Next?
Everything’s on a rollercoaster. While Netflix is pushing its content worldwide, tax law is pushing back. We’ll keep you posted as the UK tax folks close in.
