The company revealed that it had not paid any corporation tax in Britain for two years, citing tough operating conditions.
Vodafone has paid millions of pounds to HM Revenue & Customs following a dispute over the tax paid by its Irish subsidiary.
The mobile phone group is said to have used its Irish subsidiary, where no staff were employed between 2002 and 2007, to collect several million pounds a year in royalty payments from operating companies and joint ventures around the world for using its brand.
Vodafone has not revealed the details of the settlement, but reports suggest it is reclaiming €67m from the Irish government in tax which the company should have paid to the UK government.
The company said in a written statement: "Vodafone has long been a major supplier to central UK government departments and we have always complied in full with all procurement criteria defined by government."
"In all respects and at every point, Vodafone has conducted itself with the highest integrity and in full compliance with the law."
Vodafone was facing flak from campaigners after revealing it had not paid any corporation tax in Britain for two years due to tough operating conditions.
A four-year period saw the company collect royalty payments from most countries, except the UK and Italy, to help it send more than €1bn worth of dividends to the low tax jurisdiction of Luxembourg from Dublin.
The Irish brand subsidiary was shut down after the staff were brought back to the UK in 2011.