Why Amazon's UK tax bill has dropped 50%

Taxes are paid on profit not turnover. It paid lower taxes because it made lower profits. Last year it made £48m in profit - this year it made only £24m so it paid £7m tax compared to £15m.

There is heightened sensitivity around the tax affairs of technology giants such as Amazon, Google and Apple. The challenge of adapting a tax code written for a bygone era to work effectively on technology multinationals who have socked billions away in low tax jurisdictions remains.