Vodafone pays no UK tax again

UK operator group Vodafone has not paid any corporate tax in the UK for the second year in a row, the firm revealed in its annual report.

This is despite generating revenues of more than £5bn in its home market. The group paid over £2.5bn in corporate tax in other countries.

Vodafone said it was able to forego paying corporate tax due to allowances for the investment it made in its network, on spectrum and in interest payments.

However, the firm noted that it paid £882m in other UK taxes and contributions during the year.

The operator group is also currently in dispute with the Indian government, over a $2.2bn tax bill. The Indian government cabinet this week approved a non-binding proposal in an effort to begin conciliation process.