HMRC has published the latest information in respect of the UK Tax Gap.
The Tax Gap is defined as the difference between the amount of tax that should, in theory, be paid to HMRC, and what is actually paid.
The Tax Gap has been measured by HMRC since 2005-6 when it was calculated as 7.2%. It is currently calculated at 5.6% or £35bn for 2017-18 which is a small (0.1%) decrease on what was reported last year. However, due to a number of revisions in the way the Tax Gap is measured, the information reported for 2016-17 has changed and is now stated as 5.5%, thereby suggesting a small (0.1%) increase in the Tax Gap. Year on year comparisons should be made using percentage figures to avoid distortion due to rate changes or the size of the economy.
The information published shows that when considering consumer groups, the largest element of the Tax Gap continues to result from the small business group:
Consumer Group
