Amazon pays £293m in direct UK tax despite £13.7bn revenue

Amazon’s payment of direct taxes, which includes National Insurance, business rates, stamp duty and corporation tax, rose 33% year on year, which the etailer attributed to headcount growth and increases in accounting profits.

Amazon does not break out its profits in different countries but said its UK operating profit is “relatively low”. Revenues in 2019 rose 26% to £13.7bn, up from £10.9bn the previous year.

Amazon said it paid an additional £854m in “indirect taxes” last year, which included increased employee wages VAT on increased sales, up 49% from £573m in 2018.

Amazon said it has invested more than £23bn in the UK economy since 2010, but Labour MP and co-chair of the all-party parliamentary group on responsible tax Margaret Hodge has called out founder and chief executive Jeff Bezos.

“His failure to pay tax on profits is utterly obnoxious. The company deliberately uses opaque financial structures to export profits to low tax jurisdictions,” she said.

“He’s about to hire 7,000 more people in the UK; he needs a well-educated workforce and a healthy one. Why doesn’t he contribute to investment in public services?”

Amazon invested £690m in its UK infrastructure last year through expansion of its distribution network and the opening of its Manchester corporate office.

A statement from Amazon said: “The UK has now become one of Amazon’s largest global hubs for talent and this year we announced plans to create 10,000 new jobs in the country by the end of 2020.”

“We pay all taxes required in the UK and every country where we operate and focusing on one small piece does not provide a full picture of Amazon’s overall contribution to the UK. Corporation tax is based on profits, not revenues, and our profits have remained low given retail is a highly competitive, low-margin business and we continue to invest heavily.”