Amazon UK has paid corporation tax for the first time in four years due to changes in tax policy.
- The company paid £18.7m in corporation tax on £27bn of sales, amid the end of the ‘super-deduction’ tax break.
- Amazon ranks among the UK’s top 10 taxpayers for direct taxes and contributed over £4.3bn total in 2023.
- The firm invested £12bn in the UK in 2023, significantly boosting the country’s GDP.
- Amazon’s ongoing investment in UK infrastructure supports public services and job creation.
Amazon’s UK branch has marked a significant shift by paying corporation tax for the first time in four years, a change attributed to the cessation of the ‘super-deduction’ tax break introduced by former Chancellor Rishi Sunak. This fiscal policy change led Amazon UK Services to contribute £18.7 million in corporation tax on its £27 billion turnover from the previous year.
The company’s financial obligations extend beyond corporation tax; it paid £932 million in direct taxes, which includes both corporate tax and business rates. This sum represents approximately 3.45% of the company’s total revenues. A company spokesperson highlighted that despite recent changes, Amazon remains within the top 10 largest direct taxpayers in the UK, emphasising their role in the economic ecosystem.
Amazon’s strategic investments across the UK, totalling £12 billion in 2023, underscore their commitment to fuelling economic growth. These investments reportedly generated an additional £10 billion benefit to the UK’s Gross Domestic Product (GDP). The firm is recognised as a top five capital investor in the country, marking its substantial influence on business rates and infrastructure development.
Beyond mere financial metrics, Amazon’s operations provide extensive support to public services and infrastructure through tax contributions, as well as fostering job creation. The company’s expansive investments are crucial to sustaining and advancing the UK’s economic landscape, aiding the development of vital infrastructure.
The shift in tax payments aligns with broader operational strategies, such as Amazon’s recent directive for staff to return to office-based work five days a week, indicating a move towards traditional working practices. This operational decision intersects with their fiscal commitments and investments, presenting a holistic approach to corporate responsibility and growth.
Amazon’s renewed tax contributions and continued investments highlight its integral role in the UK’s economic framework.
