Ecospend, the leading payments platform in the UK, recently acquired by Trustly, outlines the potential of Open Banking payments to close the VAT tax gap which stands at £10 billion, or 6.9% of the VAT receipts received by the government, for the financial year 2021-22.
Estimates from HMRC have found that Open Banking has been pivotal in closing the VAT gap, which is the difference between the expected VAT revenue and the actual amount collected, for the tax year 2021 to 2022. Falling from 7% the previous year, this signals the existing role that new payment technologies have played in reducing the gap and the crucial function they will have in ensuring that the tax gap continues its current trajectory.
Source: financialit.net
Latest Posts in "United Kingdom"
- The UK Should Lower or Abolish, Not Raise, Its VAT Registration Threshold
- UK Should Lower or Abolish VAT Threshold to Boost Small Business Growth and Efficiency
- Lowering VAT Threshold Risks Breaching Labour’s Manifesto, Warns Self-Employed Association
- UK VAT Threshold Debate: Growth-Boosting Increase or Revenue-Raising Decrease at Autumn Budget?
- Chancellor Proposes Raising VAT Registration Threshold to £100,000 to Boost UK Economy
