Amazon UK has made a significant financial contribution by paying corporation tax for the first time in four years.
- The payment follows the cessation of the ‘super-deduction’ tax break, previously introduced by Rishi Sunak.
- Amazon’s UK services reported paying £18.7 million in taxes out of £27 billion in sales revenue last year.
- In total, Amazon UK contributed £932 million in direct taxes, including corporation tax and business rates.
- The company’s significant investments continue to position it as a top taxpayer in the UK, enhancing GDP.
For the first time in four years, Amazon UK has paid corporation tax. This shift occurred following the conclusion of a ‘super-deduction’ tax break, which had been put into place by Rishi Sunak. The ending of this policy impacted Amazon’s tax liabilities for the fiscal year.
The corporation tax component was part of Amazon’s £18.7 million tax contribution from its substantial £27 billion sales revenue. Previously, the company benefited from the ‘super-deduction’, which offered tax relief on infrastructure investments. In 2022, Amazon was granted a tax credit of £7.8 million and, the year before, a £1.1 million credit, illustrating the relief’s influence.
Overall, Amazon UK has asserted its fiscal presence by paying £932 million in direct taxes. This figure encompasses corporation tax and business rates, accounting for roughly 3.45% of Amazon’s total UK revenues. The company’s financial footprint indicates its substantial role in the UK’s economic landscape.
Moreover, Amazon’s broader tax contributions underline its operational scale. According to a company spokesperson, “As we continue to invest in our UK operations and workforce, we help fund public services and vital infrastructure, and create jobs throughout the country.”
Amazon’s investments in the UK have not only been significant in monetary terms but also in economic impact. The company invested £12 billion within the UK in 2023, creating an additional £10 billion benefit to the UK’s GDP. This positions Amazon as a leading capital investor and a major contributor to business rates in the country.
Amazon’s renewed tax contributions highlight its substantive engagement with the UK’s fiscal responsibilities and economic growth.
