Amazon pays £492m in UK tax as sales surge to £20.6bn

Online shopping giant Amazon has said it is "proud" of its contribution to the UK economy, as it reveals its latest financial results.

The firm paid £492m in taxes on revenues which rose 50% to £20.63bn, amid a Covid-driven surge in demand.

Amazon and other tech firms, which pay tax on profits not revenues, have faced scrutiny over how much tax they pay in the UK.

But Amazon said it had invested £32bn in UK infrastructure since 2010.

"We are proud of the significant economic contribution we are making to the UK economy," Amazon said in a statement.

"Looking ahead, 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," the statement added.

Amazon's total revenues in the UK, rose to £20.63bn during 2020 - up by more than 50% from £13.73 last year.

The firm, which employs 55,000 people in the UK, said the taxes included business rates, stamp duty, and other contributions.

Amazon said employers' national insurance taxes accounted for the majority of the bill as it took on 22,000 more staff over the course of the last year.

In April last year, the UK government launched a 2% tax on digital sales amid concerns that big tech firms were re-routing their profits through low tax jurisdictions. The Digital Services Tax is also included in the £492m figure.

Chancellor Rishi Sunak said in June last year that the coronavirus crisis had made tech giants even "more powerful and more profitable".