- The VAT gap is measured by comparing the net VAT total theoretical liability with actual receipts
- The preliminary estimate for the VAT gap for tax year 2023 to 2024 is £9.5 billion, representing 5.3% of the VTTL
- This estimate is higher than the previous year but lower than the year before that
- HMRC publishes three estimates of the VAT gap each year, with the first estimate for 2023 to 2024 being published in Autumn Statement 2024
- The estimate is based on household expenditure data and will be updated in the spring with new data
Source: gov.uk
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.
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