Amazon has announced it paid more than £1.3 billion in UK taxes last year, a significant increase driven by rising labour and business expenses.
The online retail giant’s total tax bill saw an uplift of at least 20 per cent, climbing from over £1 billion in the preceding year.
This surge in contributions is attributed to various factors, including a national insurance rate hike implemented in April last year, alongside increased payments in corporation tax and business rates.
The direct taxes Amazon is liable for encompass corporation tax, business rates, employer national insurance, and the digital services tax.
Despite its status as one of the UK’s largest employers, the company has recently undertaken a series of global layoffs.
Notably, Amazon did not pay any corporation tax in 2021 and 2022, benefiting from the “super-deduction” tax break introduced by then-Chancellor Rishi Sunak, which has since been reformed.
Amazon does not disclose how much it paid in each tax.
Furthermore, the total amount of tax collected, such as VAT, which customers pay on products they buy, or the national insurance contributions of its staff, came to about £5 billion, from £4.7 billion the previous year.
The online giant employs about 75,000 people in the UK in roles such warehouse workers, delivery drivers, and corporate and technology positions, making it one of the ten biggest private employers.
However, layoffs have been mounting after Amazon announced plans for about 16,000 job cuts at the start of the year, although most of these were in the US.
Bosses said they wanted to reduce layers and cut bureaucracy across the group.
Meanwhile, the new figures show it generated revenues of more than £30 billion from UK activities last year, from about £29 billion in 2024.
Amazon has been pushing ahead with plans to invest about £40 billion into the UK between 2025 and 2027.
More than £15 billion has already been spent on developments like new warehouse sites and offices in London, according to the business.
It has also launched drone deliveries from its fulfilment centre in Darlington, Co Durham, marking the first location in the UK to trial its Prime Air service.
