UK tax gap has shrunk says HMRC

The amount of tax that went uncollected in 2009-10 was £35bn, down £4bn from the previous year, according to the latest estimate of the UK “tax gap” published by HMRC.

 
The total tax gap – the difference between the tax HMRC thinks should be collected and the amount actually collected – accounts for about eight per cent of total revenues. This figure is is at the “lower end of the range” of countries who publish their tax gaps, HMRC said.

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Comments
Locutus's picture

Statistics are nonsense when the base numbers are flawed

Locutus | | Permalink

"The amount of tax that went uncollected in 2009-10 was £35bn, down £4bn from the previous year, according to the latest estimate of the UK “tax gap” published by HMRC."

HMRC have no real records concerning tax evasion and the "black economy" ....err because the sort of people engaged in those activites don't file returns with HMRC.

So really the "tax gap" figure is just a stab in the dark.  Perhaps it's £25bn or £50bn.  Who knows?

If you didn't really know the 2008-09 tax gap figure and didn't really know the 2009-10 tax gap figure then any "change" between the two is pretty much meaningless.

The real change (if it could be calculated) could just have easily have gone up by £4bn in the year.

It is absolutely ludicrous

ThornyIssues | | Permalink

It is absolutely ludicrous that a component of the "tax gap" has been quantified as "avoidance".