Amazon UK Tax Bill Slashed Despite Profit Surge

Amazon UK Services, a major division employing 66,000 staff, was granted a £7.6 million tax credit by HM Revenue and Customs for 2025. This occurred despite the company's pre-tax profits for the year increasing by 26.5% to £355 million. The tax credit resulted from a £16.7 million adjustment for previous periods, linked to a government program rewarding infrastructure investment.

Last year, Amazon invested £5.2 billion in UK infrastructure, including new fulfilment centers and datacenters. Across its five largest UK divisions, revenues reached approximately £32 billion. Combined profits for these arms rose to £555 million, with a total current tax bill of £63 million. However, a significant portion of this revenue was booked through Luxembourg, leading to an estimated UK corporation tax payment of just £39 million for these five operations.

Critics argue this represents a low effective tax rate of 7.1% for these major divisions, questioning fair competition. Amazon stated that across its entire UK business, it is a major taxpayer, having paid over £1.3 billion in direct taxes last year, including corporation tax. This figure, however, includes various other taxes and contributions.