Amazon UK division receives £7.6m tax credit despite profit surge
13 reported1 unconfirmed
Amazon’s main UK division, Amazon UK Services, was granted a £7.6 million tax credit by HM Revenue and Customs for 2025, even as its pre-tax profits rose 26.5% to £355 million and revenues increased 11% to £8.2 billion. The company reported owing £9.1 million in current tax, but this was reduced by £16.7 million due to adjustments related to a government programme rewarding investment in UK infrastructure. Amazon UK Services spent £5.2 billion last year on building and expanding fulfilment centres, offices, machinery, equipment, and datacentres. The division employs 66,000 of Amazon’s 75,000 UK staff. Across all its UK operations, Amazon reported total revenues of about £32 billion, with half coming from five divisions including Amazon UK Services, Prime Video, online advertising, datacentre business, and payment processing. The Fair Tax Foundation (FTF) analyzed filings for these five arms and found combined pre-tax profits rose from £455 million in 2024 to £555 million in 2025, while the total current tax bill halved from £126 million to £63 million, though not all went to the UK exchequer due to revenues from outside the UK. The FTF calculated the actual combined UK corporation tax paid by these five operations was £39 million, equating to a 7.1% tax rate. Amazon UK stated it paid more than £1.3 billion in UK taxes of all kinds last year, including employer national insurance, business rates, and the digital services tax, and that its total tax contribution rose to more than £6.5 billion, placing it among the top five UK taxpayers.
What’s reported
Amazon UK Services received a £7.6m tax credit from HMRC for 2025.
Pre-tax profits at Amazon UK Services rose 26.5% to £355m; revenues rose 11% to £8.2bn.
The company owed £9.1m in current tax, reduced by £16.7m due to adjustments for previous periods.
The £16.7m adjustment relates to a government programme rewarding UK infrastructure investment.
Amazon UK Services spent £5.2bn on infrastructure in 2025.
The division employs 66,000 of Amazon’s 75,000 UK staff.
Across all UK operations, Amazon generated about £32bn in revenues.
Five divisions (Amazon UK Services, Prime Video, online advertising, datacentre business, payment processing) accounted for half of UK revenues.
Combined pre-tax profits for these five arms rose from £455m (2024) to £555m (2025); total current tax bill halved from £126m to £63m.
FTF calculated actual combined UK corporation tax for these five operations was £39m, a 7.1% tax rate.
Amazon UK said it paid more than £1.3bn in UK taxes of all kinds last year, up about 20% year on year.
Amazon UK said its total tax contribution rose to more than £6.5bn in 2025.
The other half of UK revenues is booked through Amazon EU Sarl in Luxembourg, which reported €91.9bn (£79.3bn) income and paid €63.1m in tax.
Open questions
The article does not specify how much corporation tax Amazon pays for its entire UK business, as the company does not break down that figure.
Key figures
Paul Monaghan, chief executive of the Fair Tax Foundation (FTF)
Amazon spokesperson (not named)
Sources: The Guardian
