Vodafone has defended its UK tax policy claiming that its investments in infrastructure and spectrum license fees represented a significant contribution to the UK government.
The network has been criticised in the past for in relation to UK tax, undergoing a major court battle with the HMRC over unpaid taxes.
In its annual report on taxation which has been published regularly since 2012 the network addresses the controversial issue of UK corporation tax directly.
In the section titled ‘Why does Vodafone pay little or no corporation tax’, the network explained that Vodafone’s tax payments were calculated in connection with the UK tax policy investments made in the country were taken into consideration by the government.
The business added that it played by the ‘same rules’ as any other UK firm: ‘Vodafone is no different from any other UK business, whatever its size: if a self-employed trader buys a new computer or a large UK business borrows money to build a new warehouse, exactly the same rules apply.’
UK mobile market
Vodafone said that a common misconception was that most people confused revenues with profit and that its UK profits represented a small fraction of its gross revenues. It also revealed that its total UK profit was just under £50m in 2014-15.
The operator has complained in the past that the UK is one of its toughest markets. The company has previously revealed that it had to use Group funds to invest in it’s the UK business.
Vodafone paid £320m in direct taxes in 2014-15.