HMRC Annual Report: Tax Gaps and Missed Receipts for 2022/23 – A Detailed Analysis

• 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.

---

---