One of Amazon’s biggest operations in the UK paid just £1 million in corporation tax last year.
The company, which turned over more than £2.3 billion and made £75 million in profit, managed to escape a tax rate of 19 per cent thanks to staff share awards and deferred taxes.
Accounts published at Companies House show that despite turnover increasing this year the web giant managed to pay £700,000 less in tax than they did in 2017.
The figures relate to Amazon UK Services, which handles the web giant’s “fulfilment centres”, deliveries and customer services.
Amazon has more than 12 companies operating in the UK.
Hitting back at criticism over its tax payments, it revealed for the first time they paid £793 million tax last year altogether.
That includes £220million in direct taxes – employer national insurance, business rates and corporation tax – along with £573million in indirect taxes including VAT.
The US firm insisted in a blog post: “Focusing narrowly on one aspect of taxation doesn’t tell the whole story.”
Its parent company in the US revealed total sales in the UK hit a record £10.9 billion last year.
George Turner, of Tax Watch, said: “We should focus on what they’re not paying.”
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