UK tax gap has shrunk says HMRC

Kashflow logo
2

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.

Please Login or Register to read the full article

The full article is available to registered AccountingWEB.co.uk members only. To read the rest of this article you’ll need to login or register. Registration is FREE and allows you to view all content, ask questions, comment and much more.

Share this content
Tags

Replies

Please login or register to join the discussion.

By Locutus
23rd Sep 2011 11:22

Statistics are nonsense when the base numbers are flawed

"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.

Thanks (0)
avatar
26th Sep 2011 12:17

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

Thanks (0)