Amazon has announced that it paid over £1.3 billion in UK taxes last year, marking a significant increase of at least 20% from the £1 billion paid the previous year. The surge in tax contributions is largely attributed to a national insurance rate hike implemented in April 2025, along with higher payments in corporation tax and business rates.
Breakdown of Tax Payments
The direct taxes for which Amazon is liable include corporation tax, business rates, employer national insurance, and the digital services tax. This marks a notable shift from previous years, as the company did not pay any corporation tax in 2021 and 2022, having benefited from the “super-deduction” tax break introduced by the government to encourage investment.
Employment and Investment
Amazon is one of the UK's largest employers, with a workforce of 75,000 staff. The company generated over £30 billion in UK revenues last year and has announced plans to invest £40 billion in the country between 2025 and 2027. This investment is expected to create thousands of jobs and boost the UK economy.
The increase in tax payments reflects the growing scale of Amazon's operations in the UK and the impact of recent tax policy changes. The national insurance rate hike, introduced to fund public services, has particularly affected large employers like Amazon. Additionally, the end of the super-deduction tax break has led to higher corporation tax liabilities for many businesses.
Amazon's tax bill is a key indicator of its financial footprint in the UK and its contribution to the public finances. The company has faced criticism in the past for its tax practices, but the latest figures show a significant increase in its tax contributions.
