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Amazon’s Tax Bill In UK Almost £500m As Profits Rise To £20bn

Amazon Tax Bill
Credit: Unsplash

Amazon’s UK tax bill for last year was a whopping £492million, up to two thirds from 2019’s £293million bill.

The online shopping giant says it also invested more than £1.6billion in its operations in Britain this year.

In a statement, the company said the taxes ‘help fund public services and infrastructure throughout the country’.

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Amazon's Tax Bill
The company’s number of employees continues to grow in the UK. Credit: Unsplash

They said: “Looking ahead, we know that the UK remains full of opportunity and we continue to be excited by the potential to continue to invest, create jobs, develop talent and have a positive impact in communities across the country.”

“Since 2010, we’ve made direct investments in our UK operations of more than £32bn.

The firm claims one of the biggest factors to the rise in their tax bill is more employer tax.

They said: “Earlier this year we announced that we are creating a further 10,000 permanent roles across the UK in 2021, taking our total permanent workforce to more than 55,000.

“In the UK, Amazon also contributed over £100m last year in support for charities, healthcare organisations and our local communities.”

The amount of tax wasn’t the only thing that grew this year for Amazon, their profits almost doubled to an eye-watering £20.63billion, from £13.73billion in 2019. This has been attributed to the surge in online shopping thanks to the pandemic.

There has always been controversy over the tech giant’s rate of taxation. They only pay tax on profits and not sales and officially report British sales through Luxembourg.

However, the corporation insists all UK retail sales, expenses, profits, and taxes are recorded in the UK and paid directly to HM Revenue & Customs.

They said they will continue to invest in the UK: “We are proud of the significant economic contribution we are making to the UK economy.

“Looking ahead, we know that the UK remains full of opportunity and we continue to be excited by the potential to continue to invest, create jobs, develop talent and have a positive impact in communities across the country.”

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