Small businesses responsible for 41% of the tax gap, says HMRC
Posted by mostafa on 18 June, 2018
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This item was filled under Tax
The UK tax gap for 2016-17 was estimated to be £33bn, which is 5.7% of theoretical liabilities. This percentage shortfall is the same as in 2015-16 after the original figure for that year had been revised down from 6% with actual data, information from investigations and improved data analysis.
According to HMRC, small businesses are responsible for 41% of the gap, followed by large businesses at 21% and mid-sized ones at 12%. Criminals are the third largest component forming 16% of the gap.
The gap comprises eight behavioural components:
|
Behaviour |
£bn |
% |
|
|
|
|
|
Failure to take reasonable care |
5.9 |
18 |
|
Criminal acts |
5.4 |
16 |
|
Legal interpretation |
5.3 |
16 |
|
Evasion |
5.3 |
16 |
|
Non-payment |
3.4 |
10 |
|
Error |
3.2 |
10 |
|
Hidden … |