- HMRC published the latest annual edition of Measuring tax gaps
- The tax gap for the 2022/23 tax year was estimated to be 4.8%, or £39.8 billion
- The VAT gap for 2022/23 is estimated to be 4.9%, or £8.1 billion
- The excise duties gap for 2022/23 is estimated to be 4.7%, or £2.5 billion
- Income tax, national insurance contributions, and capital gains tax, as well as corporation tax, account for 34% of the total tax gap each
- VAT represents 20% of the tax gap
- 60% of the tax gap is attributed to small businesses, while mid-sized and large businesses account for 11% each
- ‘Failure to take reasonable care’ is the main reason for missing receipts, representing 30% of the total tax gap
Source: taxscape.deloitte.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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
