London: +44 (0)20 7236 2601
St Albans: +44 (0)1727 869141
Rickmansworth: +44 (0) 1923 771010
Milton Keynes: +44 (0)1908 605552

Tax gap - HMRC has issued its estimate of the tax gap

HMRC has issued its estimate of the tax gap – the difference between its estimate of what tax is due and what is actually collected.  For 2010/11 it estimates the gap at £32 billion which is broken down over taxes and behaviour.  HMRC believes that personal taxes and VAT account for almost £24 billion of the shortfall.

The behavioural breakdown is interesting though – HMRC’s estimates are:

  £ billion
  - Criminal attacks 5
  - Evasion 4
  - Hidden economy 5
  - Non-payment 4



   - Avoidance  5
   - Legal interpretation  4
   - Errors and mistakes  5

Looking at the numbers and the press coverage, one would have expected the avoidance estimate to be higher.  Maybe next year...



Date: 13th November, 2012
Author: Cathy Corns


Articles from this Author

Contact Business Service Partners

Choose from the drop down menu below to select a Partner to contact.


#Tax traps to watch when selling your main home - main residence relief and CGT risks…

Mercer & Hole partner, Andy Turner gives his views on ‘Audit of the future’…



For the latest Mercer & Hole news, visit our LinkedIn page mercer-&-hole

Click here to follow us on LinkedIn