The streaming service is estimated to make some £850 million from its British subscriber base, but only declares a UK profit of £1.12 million.
Its British arm declared revenues of £23.9 million.
The Times reports Netflix Services UK Limited employed just 14 people in its London offices. The purpose of the office was to provide “marketing and support services” to Netflix’s main European subsidiary, the Amsterdam-based Netflix International BV.
The Netherlands has become a hub for technology companies because of its light-touch regulatory environment.
A spokesperson for Netflix told The Times: ‘HMRC regularly audits the accounts of UK companies and we’re currently engaged with them on this standard review.’