Tax gap rises by £1bn, HMRC reports

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Rachael Power
Community Correspondent
Sift Media
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HMRC estimated this week that the tax gap for 2011/12 increased to £35bn, up £1bn on 2010/11.

Overall, however, there was a slight decrease in tax gap as a percentage of tax liabilities, down from 7.1% last year to 7% this year.

The reason for the increase of £1bn is down to a £1.5bn increase in the VAT gap, which was offset by...

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18th Oct 2013 14:53

What is the point of

having a tax gap when it is "made up". Tax evasion cannot be quantified by any means, nor can the black economy. What's done is done. We shouldn't forget that most illgoten gains will nearly always find their way back into the real economy. Tax avoidance has a better chance of being estimated, but if it's legal (which avoidance stands for) then it cannot be counted. So we are left with "Debtors" of which 25% is probably penalties. If Government said we are owed x in tax and we have collected y so we are going to do z to get the difference, then you know where you are. I have a feeling that the collection department is not doing too well so they can hide what they haven't recovered with these silly "gap" figures.

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21st Oct 2013 12:20

Political non sense.

"To reduce the tax gap just lower the budgeted income figure!"

Oh what a tangled web we weave when first we practice to deceive!

How much tax should have been collected if HMRC did its Job well that's a different figure all together.

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21st Oct 2013 12:27

That's what happens

every time you mix tax with politics: GIGO

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21st Oct 2013 12:59

Statistics, statistics

It's a bit like trying to work out the volume of the sea whilst bailing out a sinking ship. And about as useful.

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