HMRC Reports 2024/25 Tax Gap Rises to 6.4% – VAT makes up an estimated 20% of the tax gap

• HMRC’s latest report estimates the 2024/25 tax gap at 6.4%, up from 6.0% in 2023/24.
• This equals about £59.2 billion of missed tax receipts out of £924.4 billion in theoretical liabilities.
• Corporation tax accounts for an estimated 35% of the total tax gap.
• Income tax, national insurance contributions, and capital gains tax together also account for 35%.
• VAT makes up an estimated 20% 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.

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