The 2017 edition of HMRC’s report Measuring Tax Gaps has been published.
HMRC have published their report measuring the UK’s tax gap for the years 2015-16. The ‘tax gap’ is the difference between the amount of tax that should, in theory, be collected by HMRC, and what is actually collected. The report shows a decrease in the tax gap from 6.1 percent to 6 percent of total tax liabilities, with key findings showing that the majority of the gap relates to income tax, National Insurance contributions, capital gains tax and VAT. Taxpayer behaviours have also remained largely consistent, with the key causes of the gap being failure to take reasonable care, legal interpretation, evasion and criminal attacks.
Some of the key findings from the report include:
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