22 June 2023
HM Revenue and Customs (HMRC) has confirmed the estimated tax gap for tax year 2021/22 is at an all-time low of 4.8%.
The annual Measuring Tax Gaps publication estimates the difference between the total amount of tax expected to be paid and the total amount of tax actually paid to HMRC.
It has been reported that, errors, a lack of sufficient care, evasion and criminal attacks all contribute to the tax gap, which has fallen from 7.5% in 2005/06 to 4.8% in 2021/22. In monetary terms, the tax gap has remained at 4.8% because estimated tax liabilities rose from £643 billion in 2020/21 to £739 billion in 2021/22.
The report aims to enhance public trust in the tax system and in HMRC’s ability to support taxpayers in meeting their obligations and pay the tax they owe. HMRC estimate the tax gap using the most up to date information available every year, however, figures may be revised as more data becomes available.
Further findings for the 2021/22 tax gap publication can be located, here.
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