Amazon’s UK division has resumed paying corporation tax after four years, marking a significant fiscal shift following the termination of a notable tax break.
- The ‘super-deduction’ tax break, introduced by Rishi Sunak, had previously influenced Amazon’s tax contributions.
- In 2023, Amazon’s UK Services paid £18.7 million in current tax, with overall direct taxes amounting to £932 million, approximately 3.45% of its total UK revenues.
- Amazon has been recognized as a major taxpayer in the UK, reflecting its commitment to economic contributions.
- Despite the tax payments, Amazon continues its substantial investments across the UK, including a reported £12 billion in 2023.
Amazon’s UK branch has taken notable fiscal steps by paying corporation tax for the first time in four years. This development follows the conclusion of a ‘super-deduction’ tax break spearheaded by former Chancellor Rishi Sunak. The delivery giant’s UK Services unit contributed £18.7 million in ‘current tax’ last year, against a backdrop of £27 billion in sales, with the majority believed to be corporation tax.
In total, Amazon disbursed approximately £932 million in direct taxes including corporate tax and business rates, which equated to about 3.45% of its total UK revenues. This figure underscores the company’s significant fiscal responsibilities and its impact on the British economy.
A spokesperson for Amazon highlighted the company’s substantial role within 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 company further articulates its standing as a top taxpayer, citing its more than £4.3 billion total tax contribution in 2023 alone.
The termination of the super-deduction, which had provided UK businesses with temporary tax relief on investments, signals a shift in fiscal policy affecting major corporations like Amazon. The retail giant had previously leveraged this tax credit, receiving £7.8 million in 2022 and £1.1 million in the preceding year, thanks to significant investments in infrastructure.
Amazon’s influence extends beyond just tax contributions. In 2023, the corporation invested £12 billion across the UK, resulting in an additional £10 billion impact on the nation’s GDP. This level of investment ranks Amazon among the top five capital investors in the country, further underlining its economic significance.
The resumption of corporation tax payments by Amazon UK highlights its ongoing economic influence and commitment within the UK economy.
