Amazon's UK tax bill tops 1.3bn as employer NI hike and 30bn sales drive the total higher

Amazon reported its direct UK tax bill climbed above £1.3 billion in 2025, about 20% higher than the previous year. The increase was attributed largely to higher employers’ national insurance rates set by Chancellor Rachel Reeves and to continued revenue growth in UK marketplace and cloud businesses. UK turnover rose to about £30 billion in 2025 from £29 billion in 2024, supported by online spending and new contracts for Amazon Web Services. Total taxes administered on behalf of the Government, including VAT, PAYE, and employee national insurance, increased to roughly £5 billion from £4.7 billion. Amazon cleared the £1 billion direct-tax threshold for only the second year but did not provide a breakdown of the components of that figure.

"Amazon has joined a small club of British corporate taxpayers writing nine-figure cheques to the Exchequer, telling investors and ministers that its direct UK tax bill climbed above £1.3 billion in 2025, a jump of around 20 per cent on the previous year."

"The increase was driven largely by Chancellor Rachel Reeves's higher rate of employers' national insurance and by another year of revenue growth at its UK marketplace and cloud businesses. UK turnover edged up to about £30 billion in 2025 from £29 billion in 2024, as British shoppers continued to migrate spending online and corporate customers signed fresh contracts with Amazon Web Services."

"It is only the second year Amazon has cleared the £1 billion direct-tax threshold, putting it alongside the likes of Lloyds Banking Group, NatWest and GSK. The company has declined, however, to break the figure down between corporation tax, business rates, employer national insurance and the digital services tax, the disclosure campaigners say is the only way to settle the long-running argument about whether the e-commerce giant pays its fair share."

"“If they really want to be open they should publish a proper breakdown of the different taxes,” he said. “This mixes together a bunch of different taxes, so gives us no idea how much corporation tax they pay. Are they paying a fair amount? Or are they playing tricks? They don't tell us.”"

Read at Business Matters