Amazon has announced that its UK tax bill for 2025 exceeded £1.3 billion, marking an increase of at least 20% from the previous year. The rise is attributed to escalating labour and business costs, including a higher employer national insurance rate that took effect in April 2025.
Tax Breakdown and Revenue
Direct taxes paid by Amazon include corporation tax, business rates, employer national insurance, and the digital services tax. The company did not disclose a precise breakdown of each tax component. However, it confirmed that the total tax collected, including VAT from customer purchases and staff national insurance contributions, reached approximately £5 billion, up from £4.7 billion in 2024.
Amazon's UK operations generated over £30 billion in revenue last year, compared to around £29 billion in 2024. The company has committed to investing approximately £40 billion in the UK between 2025 and 2027, with over £15 billion already allocated to new warehouses and London offices.
Employment and Corporate Changes
Amazon remains one of the UK's largest private sector employers, with around 75,000 staff in roles ranging from warehouse operations to technology. Despite global job cuts of about 16,000 earlier in the year, mostly in the US, the company stated its intention to reduce management layers and streamline operations.
Historical Context
In 2021 and 2022, Amazon paid no corporation tax due to the "super-deduction" tax relief introduced by former Chancellor Rishi Sunak, which was later reformed. The recent increase in corporation tax and business rates contributed to the higher 2025 bill.
Innovations
Amazon has launched drone deliveries from its fulfilment centre in Darlington, County Durham, the first UK location to pilot its Prime Air service.
