The amount of unpaid UK tax has remained at the lowest it has ever been, sitting at 4.8%, HM Revenue and Customs (HMRC) has revealed.

Published in the annual Measuring Tax Gaps report, which estimates the difference between the total amount of tax expected to be paid and the actual amount paid, the figure has remained at the same revised estimate as last year.

The report shows the long-term reduction in the tax gap, which has fallen from 7.5% in 2005 to 2006, to the current 4.8% between 2021 and 2022. Factors which contribute to the tax gap include errors, a lack of sufficient care, evasion and criminal attacks.

In monetary terms, the recent figures put the difference at £36bn for the 2021-22 tax year, increasing from £31bn in 2020-21.

However, HMRC have stated that the gap remains at 4.8% because estimated tax liabilities rose from £643bn in 2020-21 to £739bn in 2021-22.

Further findings for the 2021-22 tax gap include small businesses at 56%, representing the largest proportion of the tax gap by group. This is followed by criminals, large businesses and mid-sized businesses at 11% each (£4.1bn, £3.9bn and £3.8bn respectively).

Wealthy individuals account for 5%, with other individuals accounting for 6%. Income tax, national insurance contributions and capital gains tax makes up 35%, with corporation tax estimated to be 30% at £10.6bn, which is the second largest component of the tax gap by tax type.

HMRC’s director general for customer strategy and tax design, Jonathan Athow, said: “The tax we collect funds the country’s public services and we want to ensure everyone pays the correct amount. These figures show most taxpayers and businesses pay what they should.

“This important research enables us to better help those making common mistakes or failing to take sufficient care, as well as tackling the minority deliberately hiding their income.”

Share Story: