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The amount of unpaid UK tax has remained at an “all-time low” of 4.8%, HMRC has revealed.
Its 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, which has remained the same as last year’s revised estimate of 4.8%.
The report also shows a long-term reduction in the tax gap. According to HMRC, errors, a lack of sufficient care, evasion and criminal attacks all contribute to the tax gap, which has fallen from 7.5% in 2005 to 2006 to 4.8% in 2021 to 2022.
In monetary terms, the most recent figures put the difference at £36bn for the 2021 to 2022 tax year, an increase from £31bn in 2020 to 2021.
The tax gap remained at 4.8% because estimated tax liabilities rose from £643bn in 2020 to 2021 to £739bn in 2021 to 2022.
Jonathan Athow, HMRC’s director general for Customer Strategy and Tax Design, said: “The tax we collect funds the country’s public services and we want to ensure everyone pays the correct amount. These figures show most taxpayers and businesses pay what they should.
“This important research enables us to better help those making common mistakes or failing to take sufficient care, as well as tackling the minority deliberately hiding their income.”
