Significant regional differences in UK income tax! Amazon Pays £1 Billion in UK Taxes! HMRC Launches Quick Login for Digital Services
- TBA
- Feb 16
- 4 min read
HMRC introduces GOV.UK One Login for new customers
From 9 February 2026, new customers registering for digital services with HM Revenue and Customs (HMRC) can log in using GOV.UK One Login, without needing to create a traditional 10–12 digit Government Gateway ID. Under this streamlined process, users only need an email address and password to access HMRC services.
GOV.UK One Login is the UK government’s planned unified online login system, which will eventually cover all government digital services. Users only need to register once to use the same login for managing taxes, applying for passports, registering to vote, and more. By verifying their identity once, users can reuse their login across different government services, saving time when interacting with the government online.
HMRC stated that the rollout of the new system will be gradual and closely monitored. Customers who already have a Government Gateway account do not need to switch immediately; they can continue using their existing account and will be notified when it is time to move to GOV.UK One Login. If a user already has a GOV.UK One Login for other government services (such as managing their state pension or Companies House services), they will still need to use their Government Gateway account to access HMRC for now.
With the addition of HMRC’s tax services, more than 200 government services will now be accessible via GOV.UK One Login. Anyone needing extra assistance with GOV.UK One Login can contact the Government Digital Service for support.
Some London boroughs have tax revenues exceeding those of larger cities combined
HMRC Data Shows UK Income Tax Highly Concentrated in London and the Southeast
The latest data from HM Revenue & Customs (HMRC) shows that total UK income tax revenue reached £240.7 billion in the 2022/23 fiscal year, but the distribution of this revenue is highly uneven across regions. London and the Southeast of England continue to be the core contributors to the UK’s public finances, with some London boroughs paying more income tax than several major cities combined.
According to the data, Wandsworth in London paid £4.26 billion in income tax in 2022/23, surpassing the combined total of £4.23 billion from Leeds and Birmingham. At the same time, Hackney in London contributed £1.54 billion, exceeding the £1.35 billion paid by Glasgow, Scotland’s second-largest city.
Overall, London and the Southeast accounted for 45% of total UK income tax revenue in 2022/23, with London alone contributing 26.5%.
The report also highlights that the 20 UK regions with the highest per capita income tax contributions are all located in London or the Southeast. This is not only due to the high concentration of high-income earners in these areas, but also reflects recent tax policies such as frozen tax thresholds and the so-called “fiscal drag” effect—whereby rising incomes push more taxpayers into higher tax bands over time, increasing revenue.
Analysts note that London and the Southeast have a high proportion of taxpayers subject to the top 45% income tax rate, which has long contributed to the region’s outsized tax revenue. In April 2023, the threshold for the 45% additional rate was lowered from £150,000 to £125,140, further increasing the tax burden on high earners in these regions.
Moreover, since April 2021, the UK’s personal allowance and higher-rate threshold have been frozen. As incomes rise, more taxpayers are pushed into higher tax bands, creating the “fiscal drag” effect and further boosting revenue.
Looking at long-term trends, over the ten-year period from April 2016, London’s income tax revenue rose from £35.3 billion to £63.8 billion, an increase of 80.7%, compared with 48.4% in the rest of the UK.
Analysts involved in the report emphasize that freezing allowances and lowering the additional rate threshold have significantly increased London’s contribution to UK tax revenue over the past decade, exceeding an 80% rise. They also warn that the UK’s heavy reliance on London and the Southeast for tax revenue could pose long-term challenges to the competitiveness of the tax system. Persistently high tax burdens may encourage some high-income earners to relocate overseas or reduce their economic activity.
Amazon pays £1bn to UK taxman
US tech giant Amazon recently reported that its revenue in the UK reached £29 billion in 2024, with a total tax payment of £1 billion, representing a 7% increase compared with the previous year. Amazon emphasized that its total “taxes borne and collected” amounted to £5.8 billion, up from £4.3 billion in 2023, a year-on-year increase of 34%. This total includes employment taxes, business rates, value-added tax (VAT), plastic packaging tax, stamp duty land tax, and corporation tax.
Amazon stated that it is one of the “top ten taxpayers in the UK.” In 2024, the company paid £500 million in employer taxes in the UK, mainly employer National Insurance contributions (NICs), and £175 million in business rates. Amazon noted that the rise in business rates is partly due to the expansion of its physical store presence.
Globally, Amazon now employs more than 1.5 million people, including 75,000 in the UK. These roles span software development, product management, and engineering, as well as positions in fulfillment centers, sortation centers, and delivery stations.
Amazon also announced plans to invest £40 billion in the UK between 2025 and 2027, aiming to create thousands of permanent jobs, including over 2,000 positions outside London and the Southeast.
In 2024, Amazon’s capital investment in advanced robotics technology reached £1.6 billion. This investment includes building four new fulfillment centers and new delivery stations nationwide, as well as upgrading and expanding its existing network of more than 100 operational facilities.
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