Amazon has reported that its UK sales climbed to £29bn last year, overtaking Asda to become slightly larger than Britain’s third-largest supermarket.
Growth at the tech and retail giant slowed, however, with UK sales rising 7.4% in 2024, down from 12.5% the previous year.
Amazon now employs around 75,000 people in the UK—about half the number working at Asda—and said it paid £1bn in UK taxes, up from £932m in 2023. The figure includes business rates, corporation tax, and national insurance contributions, though the company does not provide a breakdown.
The government has signalled plans to revise the business rates system from next year, aiming to shift more of the burden onto online retailers such as Amazon and reduce pressure on high street businesses. But the proposals would also raise rates for some large properties, including hospitals, department stores, and supermarkets, as well as warehouses and offices used by e-commerce firms.
Amazon’s UK Services arm is expected to publish its full accounts next week. In 2023, it paid £18.7m in corporation tax, the first such payment since 2020. The division had previously benefited from tax credits of £7.8m in 2022 and £1.1m in 2021, linked to heavy investment in infrastructure.
In 2024, the company invested £1.6bn in UK infrastructure, including new warehouses. Some of the tax relief enjoyed in earlier years has since been unwound, contributing to the higher tax charge.
