HMRC 'lost' £5.5bn in tax evasion black hole over pre-pandemic year

Mark Battersby
clock • 2 min read

The so-called ‘tax gap' measuring the difference between the tax HMRC expects to receive and the tax it receives hit £35bn in 2019/20, including an estimated £5.5bn 'loss' from tax evasion revenue. As a percentage of overall liabilities, this gap rose year-on-year for the first time since 2013/14, from 5% to 5.3%, according to HMRC's ‘Measuring tax gaps 2021 edition - tax gap estimates for 2019 to 2020 - GOV.UK' The biggest sources of lost revenue were Income Tax, National Insurance and Capital Gains Tax (£12.6bn), followed by VAT (£12.3bn), while tax evasion (£5.5bn) and criminal att...

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