2021 to 2022 VAT Receipts Investigation
HMRC has published an announcement detailing a potential error to April 2021 to March 2022 net VAT receipts with an expected upwards revision of approximately £750 million (0.5% of 2021 to 2022 net VAT receipts). This revision will impact the preliminary VAT gap estimate for 2021 to 2022 published on 17 November 2022. However, the expected revision to the VAT gap estimate for 2021 to 2022 will be offset by also updating the VAT gap model to include Trust Statement aligned net VAT receipts for 2021 to 2022. The overall approximate impact of these two updates combined is an upward revision to net VAT receipts for 2021 to 2022 of around £280 million and a 0.2 percentage points reduction in the preliminary VAT gap estimate for 2021 to 2022. This revision will be included alongside other updates as part of the second estimate of the VAT gap for 2021 to 2022 which will be published in Spring 2023.
| Financial year | Net VAT total theoretical liability | HMRC net VAT receipts | Net VAT receipts related to net VAT total theoretical liability in 2021 to 2022 | VAT gap (point estimate) | VAT gap (per cent) |
|---|---|---|---|---|---|
| 2021 to 2022 | £143.8 billion | £157.3 billion | £133.9 billion | £10.0 billion | 6.9 |
Source gov.uk
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