Amazon’s UK arm paid just £3.8m more corporation tax in 2020, despite sales rising by £1.9bn.

Amazon warehouse

The retail titan recorded soaring sales in the year to December 2020, up 64% to £4.85bn, while profits skyrocketed by 25% to £128m.

Despite this, accounts for Amazon’s UK services division filed through Companies House show it paid just £3.8m more in corporation tax than it did in 2019, up 26% to £18.7m.

Amazon’s total revenues from retail, logistics and IT services increased just over 50% to £20.63bn during 2020.

The retailer tried to rebuff accusations of underpaying tax, claiming it had paid £492m in “direct taxes” for the year, up from £293 in 2019.

Amazon also claimed it had invested £1.6bn in the UK, more than double the previous year, including a solar power scheme and windfarm.

Amazon’s statement via Companies House said: “We are proud of the significant economic contribution we are making to the UK economy.

“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.”