Amazon UK has made headlines by paying corporation tax for the first time since 2019.
- The company paid £18.7m in current tax on £27bn of sales last year, marking a significant corporate tax contribution.
- This tax payment follows the end of a ‘super-deduction’ tax break which Amazon had previously utilised.
- In total, Amazon’s direct tax contributions in the UK amounted to £932m, including business rates.
- The company’s investments continue to bolster the UK economy with £12bn invested, generating a £10bn GDP benefit.
Amazon’s UK division has recently paid corporation tax for the first time in four years, with a payment of £18.7 million recorded as ‘current tax’ from its £27 billion revenue over the last financial year. This is the result of the termination of the ‘super-deduction’ tax break, which had been implemented by former Chancellor Rishi Sunak.
The substantial tax payment forms part of a broader £932 million direct tax contribution made by Amazon, which also includes payments related to business rates. Viewed as approximately 3.45% of its overall UK revenue, this tax payment is a noteworthy development in Amazon’s fiscal activities in the region.
For the years 2022 and 2023, Amazon received tax credits, including a £7.8 million credit in 2022 and a further £1.1 million credit the previous year. These credits stemmed from Amazon’s extensive investments in infrastructure, which qualified the company for deductions under the ‘super-deduction’ initiative.
A spokesperson for Amazon stated that the company remains committed to investing in its UK operations. Highlighting Amazon’s significant role as a taxpayer, the spokesperson noted that Amazon ranks among the top ten taxpayers in the UK, with a total tax contribution exceeding £4.3 billion in 2023 alone.
In addition to tax contributions, Amazon’s investments in the UK have been substantial, with £12 billion injected into the economy in 2023. This investment has provided an additional £10 billion benefit to the UK’s Gross Domestic Product (GDP) and solidified Amazon’s position as one of the top five capital investors in the country.
Amazon’s recent tax payments and continued investments signify its substantial involvement and influence in the UK economy.
