The UK's tax gap estimate rose to a record to £39.8 billion in 2022/23 as small
businesses accounted for almost two thirds of unpaid tax, according to HMRC's
data.
The tax gap was 4.8%, which is the difference between the amount of tax that
should be paid to HMRC and what is actually paid.
The tax gap estimate for corporation tax for small businesses rose to £10.9
billion, while the tax gap for total corporation tax was £13.7 billion.
John Barnett, Chair of the Chartered Institute of Taxation's Technical Policy and
Oversight Committee, said:
'Critics of HMRC can point to a record amount – nearly £40 billion – not
being collected, but HMRC can legitimately point out that they are bringing
in a record share of the expected tax take.
'That both these things can be true simultaneously tells us more about
current tax levels than anything else.
'These figures show there is plenty of work for HMRC to do in a range of
areas to reduce the tax gap. However, we should not lose sight of the fact
that their record, collecting more than 95% of tax due, compares well
internationally.'
Internet links: GOV.UK Chartered Institute of Taxation