The UK’s tax gap – the difference between the tax due and the tax collected – fell to a record low of 6% in 2015 to 2016.
The UK has one of the lowest tax gaps in the world, which has fallen by 1.9% over a ten year period. If this had not been tackled the gap would have grown to £46 billion and the country would have been nearly £12 billion a year worse off.
‘HMRC’s online tax accounts and use of data increasingly help people get their tax right and prevent mistakes and fraud. This enables us to focus on tackling those who deliberately pay less than they owe,’ said Jim Harra, Director General, Customer Strategy & Tax Design, HMRC. ‘Measuring the tax gap gives us vital insights into where to direct our efforts, and tells us that our strategy is succeeding.’
HMRC has introduced several measures to reduce tax avoidance, evasion and non-compliance over the past seven years. These include tackling avoidance by multinational companies, introducing new criminal offences and penalties, and investing in HMRC’s compliance operations.
