Amazon’s UK tax payments increased significantly last year, with the company contributing more than £1.3 billion across various tax categories. This marks a rise of at least 20 percent compared to the previous year, when its tax bill exceeded £1 billion. The reported figure includes corporation tax, business rates, employer National Insurance contributions, and digital services tax.

The increase is attributed in part to higher employer National Insurance costs following a rate hike implemented in April 2023. Amazon also paid more in corporation tax and business rates, though the company does not provide a detailed breakdown of how much it contributes under each category.

Amazon previously paid no UK corporation tax in 2021 and 2022, benefiting from the government’s “super-deduction” investment tax allowance introduced under former Chancellor Rishi Sunak. Last year, the broader tax revenues collected by Amazon on behalf of the government—including value-added tax (VAT) paid by customers and employee National Insurance contributions—reached approximately £5 billion, up from £4.7 billion the year before.

Tax experts have called for greater transparency regarding Amazon’s tax contributions. Dan Neidle of Tax Policy Associates noted that combining various taxes in a single figure obscures how much the company actually pays in corporation tax, making it difficult to assess whether the amount is fair or if tax avoidance strategies are being employed.

Amazon employs around 75,000 people in the UK, ranking it among the country’s ten largest private sector employers. However, the company is undergoing global job reductions, cutting approximately 16,000 positions mainly in the United States as part of efforts to streamline management. Despite these changes, Amazon’s UK revenues rose to more than £30 billion last year.

Looking ahead, Amazon plans to invest £40 billion in the UK between 2025 and 2027, underscoring its ongoing commitment to expanding its operations in the country.