Amazon paid £492m in UK tax last year despite £20.6bn revenue
Amazon has revealed that while revenue from UK activities surged 50 per cent in 2020 the company paid just £492m in direct taxes.
The company’s total tax contribution from direct and indirect sources was £1.15bn following record revenue from UK activities of £20.63bn last year as successive lockdowns drove shoppers online. In 2019, Amazon raised £13.73bn in revenue and paid just £293m in UK taxes.
Despite a multi billion pound uplift from sales Amazon only paid an additional £3.8m in corporation tax in 2020 compared to the previous year.
“We are proud of the significant economic contribution we are making to the UK economy,” a spokesperson for Amazon said.
The Bezos owned company fended off accusations of failing to pay its fair share of taxes by stressing the benefits it brings to the UK. Amazon invested £1.6bn into its UK business in 2020 to expand operations, up from £690m in 2019.
“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,” Amazon added.
The news has prompted a furious reaction online with the phrase ‘Amazon UK’ trending on Twitter.
Keyboard warriors were particularly scathing about the tech giant’s measly tax bill in light of the government’s announcement that a national insurance tax hike will be used to plug the pandemic shaped hole in the UK’s finances.
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