Amazon UK has paid corporation tax for the first time in four years.
- The end of a “super-deduction” tax break led to this tax payment.
- Amazon UK Services paid £18.7 million in taxes on £27 billion sales.
- Amazon’s direct taxes amounted to £932 million, roughly 3.45% of revenues.
- The company ranks in the top 10 UK taxpayers and heavily invests in the UK.
Amazon UK has recently settled corporation tax responsibilities after a four-year hiatus, marking a significant fiscal development influenced by the cessation of the ‘super-deduction’ tax break. This tax incentive, introduced by Rishi Sunak, had previously allowed corporations substantial relief on their investments, temporarily reducing tax liabilities.
In this fiscal step, Amazon UK Services registered a payment of £18.7 million in ‘current tax’ last year. This amount was principally tied to corporation tax obligations and was assessed on sales figures reaching a substantial £27 billion. These calculations reflect a broader tax strategy aligning with corporate financial conduct.
Moreover, Amazon UK’s broader spectrum of direct tax contributions reached an impressive £932 million, representing approximately 3.45% of its revenue. The organisation has consistently highlighted its tax contributions, illuminating its financial role and commitment to regulatory adherence in the region.
The cessation of the ‘super-deduction’ enabled Amazon to engage fully in standard UK tax procedures. Notably, Amazon received tax credits of £7.8 million in 2022 and £1.1 million the prior year, following capital investments facilitated by the aforementioned tax relief. These credits were part of broader investment strategies in infrastructure and workforce development.
A company spokesperson iterated the firm’s integral role in the UK, stating: “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.” The representative also emphasised Amazon’s ranking among the top contributors to direct taxes and business rates in the UK.
In 2023, Amazon’s investments in the UK were substantial, totalling £12 billion, which ostensibly augmented the UK’s GDP by an estimated £10 billion. The company’s commitment to capital investment and economic enhancement extends beyond fiscal records, underscoring an intent to contribute robustly to national development.
Amazon’s renewed tax contributions underscore its commitment to fiscal responsibility and economic investment in the UK.
