HMRC Reports 2023/24 Tax Gap at 5.3%, Small Businesses Major Contributors

• HMRC published the annual report on tax gaps for 2023/24
• The tax gap was estimated at 5.3% for 2023/24, down from 5.6% in 2022/23
• This represents £46.8 billion of missed receipts out of £876 billion in theoretical tax liabilities
• Corporation tax accounts for 40% of the total tax gap
• Income tax, national insurance contributions, and capital gains tax account for 31%
• VAT accounts for 19% of the tax gap
• 60% of the tax gap is attributed to small businesses
• Mid-sized businesses account for 9% and large businesses for 12%
• Failure to take reasonable care is the main reason for missing receipts, at 31% of the 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.

---

---