First Time Since 2020: £18.7m Paid on £27bn Sales

  • Amazon UK pays corporation tax for the first time since 2020
  • £18.7m paid in ‘current tax’ on £27bn sales last year
  • Shift from £7.8m tax credit in 2022 and £1.1m credit in 2021
  • High street retailers criticize Amazon’s tax advantage over physical stores
  • Amazon’s full UK operation paid £932m in tax last year, including business rates, corporation tax, and national insurance contributions
  • Investment of £12bn in the UK in 2023 created a £10bn benefit to UK GDP

Amazon’s main UK division has paid corporation tax for the first time since 2020, following the end of a ‘super-deduction’ tax break. The group’s UK services paid £18.7 million in ‘current tax’ last year on sales of £27 billion. This marks a shift from the £7.8 million tax credit received in 2022 and a £1.1 million credit in 2021. High street retailers have argued that the company enjoys an unfair advantage due to significant business rates on their physical stores. Amazon’s full UK operation paid £932 million in tax last year, including business rates, corporation tax, and national insurance contributions, up from £781 million the previous year. The Fair Tax Foundation’s CEO, Paul Monaghan, stated that transparency is crucial for understanding how much profit Amazon generates in the UK from its £27 billion revenue. An Amazon spokesperson responded by highlighting their investment of £12 billion in the UK in 2023, which created a £10 billion benefit to UK GDP and made them one of the top five capital investors in the country.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Amazon’s tax payments in the UK, including corporation tax, business rates, and national insurance contributions. It also includes comments from an expert on tax transparency and Amazon’s investment in the country. However, it could provide more context on the ‘loss-making’ subsidiary in Luxembourg and the specifics of the tax breaks mentioned.
Noise Level: 4
Noise Justification: The article provides relevant information about Amazon’s tax payments in the UK and compares it with previous years, but could benefit from more detailed analysis of the company’s overall tax contributions and investment strategies.
Financial Relevance: Yes
Financial Markets Impacted: UK corporation tax and business rates
Financial Rating Justification: The article discusses Amazon’s payment of corporation tax in the UK and its impact on high street retailers, as well as the company’s overall tax contribution to the country.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event in the text.

Reported publicly: www.retailsector.co.uk