The UK tax gap for 2023–2024 was estimated at 5.3%, equal to £46.8 billion in unpaid tax. Despite this, HMRC collected £829.2 billion, or 94.7% of tax due.
Revised data also updated the 2022–2023 gap from 4.8% to 5.6%, reflecting better data and methods.
Small businesses made up 60% of the gap, and Corporation Tax accounted for 40%. Key causes included carelessness (31%), errors (15%), and evasion (14%).
Exchequer Secretary James Murray MP reaffirmed the government’s goal to raise an extra £7.5 billion by closing the gap, improving services, and modernising tax systems.
The Making Tax Digital programme is expected to generate £5.95 billion by 2030. An additional £1.7 billion has been allocated to hire staff focused on compliance and debt recovery.
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