Amazon’s use of self-employed ‘gig economy’ workers reduces its payroll taxes

Amazon’s UK operation pays less in employer national insurance (NI) contributions than Guy’s Hospital in London, according to its accounts published last week.

Amazon Services UK, the online giant’s main operating company in the UK, paid NI contributions of £54.1m in 2017.

By comparison, Guy’s and St Thomas’ NHS Foundation Trust paid £70.1m in social security contributions in 2017-18. Tesco paid £486m in the year 2017-18.

Amazon has been criticised for using delivery drivers who are self-employed and do not have paid holiday and statutory sick pay — and for the working conditions of agency staff in its warehouses.

Its use of “gig economy” workers reduces its payroll taxes because there is no requirement to pay employer NI contributions for self-employed workers.

Frank Field, chairman