UK revenues for Amazon surge, covering a £1 billion tax payment

Amazon, one of the UK's largest employers, has been making headlines recently due to its tax affairs. In previous years, the online marketplace faced significant criticism for paying little to no corporation tax in the UK. However, it appears that the situation has changed.

In 2024, Amazon paid about £1 billion in direct taxes in the UK, a significant increase from the previous year. The exact amount of corporation tax paid during this period was not disclosed. It is understood that Amazon did not pay corporation tax in 2021 and 2022 due to a "super-deduction" tax break, but this break has since been reformed.

Amazon's revenues in the UK also saw a substantial rise, with figures showing an increase from about £27 billion in 2023 to over £29 billion in 2024. This growth has led to the creation of new job opportunities, with Amazon planning to hire thousands more employees as part of its continued growth plan.

Amazon is set to invest £40 billion in the UK over the next three years, with plans to create 2,000 jobs at a new warehouse in Hull and about 2,000 jobs at another in Northampton. This investment and job creation make Amazon one of the biggest employers in the UK and among the "top 10 UK taxpayers".

Direct taxes that Amazon must pay in the UK include corporation tax, business rates, and digital services tax. In addition to these, Amazon collected over £4.7 billion in tax from VAT and national insurance contributions last year.

Despite the recent developments, Amazon's tax affairs in the UK have continued to face criticism. The company's past practices, such as the use of tax loopholes and the lack of transparency regarding its tax payments, have raised concerns among politicians and the media.

In conclusion, while Amazon's tax bill rose in 2024 following an increase in revenues, the exact amount of corporation tax paid during that year remains undisclosed. The company's continued growth and investment in the UK, coupled with the creation of new job opportunities, are positive signs. However, the ongoing criticism of Amazon's tax affairs underscores the need for greater transparency and accountability in the tech giant's UK operations.