Online retailer pays just £220m tax on £10.9bn earnings

Amazon, an American-based, multinational technology company, commonly known for its online retail services, has been trading in the UK for 21 years.

This week, they published a fraction of their tax details for the past year. Amazon paid the UK only £220 million in taxes last year despite its total revenues from doing business in the country amounting to £10.9 billion.

The company also revealed they paid £63.4 million in business rates, about £40 million less than a high street fashion chain retailer, which made half the sales of Amazon.

Their small tax bills are a result of an employee share scheme, which is structured in a way that reduces Amazon’s tax liability when the share prices rise.

The Government has plans to help high street shops to compete on equal terms by placing a 2% tax on sales next year for online retailers.

If you have any queries regarding the law around taxation, then contact us at Audley Chaucer Solicitors.

Written by Syeda Anjum

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