Vodafone UK earned more than £5bn in revenues last year, but did not pay any UK corporation tax, it has been revealed in an annual report.
The report said that the full year Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) margin was down 0.5ppt to 23.5 per cent, which it blamed on increased A&R investment and lower support costs.
The report describes Vodafone’s progress in the UK: “We made the first UK mobile phone call in 1985 and we were the first UK mobile network operator to launch commercial 3G services in 2001. Our business has expanded rapidly and today we account for 26 per cent of the UK market (measured by revenue) and have a market leading 37 per cent share of the mobile enterprise market.”
Despite the report saying no corporation tax was paid, Vodafone did pay £24m in respect of tax recalculated for previous years.