HMRC publishes the 2019 to 2020 tax gap

17 September 2021

HMRC has published the tax gap for 2019 to 2020, an estimated 5.3% of the total tax labilities for the year – this figure equates to £35 billion in unpaid taxes.  

HMRC uses the tax gap as a tool to understand the scale of non-compliance.  In the area of Income Tax, National Insurance and Capital Gains tax, the gap contained the biggest share of the total gap, with an estimated £12.6 billion unpaid in this area.  Almost half of the total gap (43%) is attributed to small businesses.  

The 2019 to 2020 tax year saw the gap rise by 0.2%, from £33 billion in the previous year.  Read the full report here.

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