{"id":75202,"date":"2016-10-20T08:37:00","date_gmt":"2016-10-20T08:37:00","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=bfd0d928cde8f5d3efd0ceb9171f6563"},"modified":"2016-10-20T08:37:00","modified_gmt":"2016-10-20T08:37:00","slug":"press-release-uk-tax-gap-falls-to-6-5-as-hmrc-targets-the-dishonest-minority","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=75202","title":{"rendered":"Press release: UK tax gap falls to 6.5% as HMRC targets the dishonest minority"},"content":{"rendered":"
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The UK\u2019s tax gap, the difference between the amount of tax due and the amount collected, is one of the lowest in the world.<\/p>\n

Today\u2019s figures reinforce the significant progress that HMRC<\/abbr> has made in reducing the tax gap from 8.3% in 2005 to 2006. If the tax gap had remained at the 2005 to 2006 level of 8.3%, it would have grown to \u00a347 billion and the country would have been \u00a311 billion a year poorer.<\/p>\n

This year\u2019s tax gap figures highlight the positive impact that HMRC<\/abbr>\u2019s digital transformation is having in making it easier for people to pay the right amount of tax.<\/p>\n

In particular, the introduction of Real Time Information for the Pay As You Earn (PAYE<\/abbr>) system has led to more accurate recording of information on payroll taxes, and the shift to VAT online has helped bring the VAT gap in 2014-15 to its lowest level of 10.3% (\u00a312.7 billion). The benefits to individuals and businesses will continue to grow as HMRC<\/abbr> makes further progress on its digital transformation.<\/p>\n

The Financial Secretary to the Treasury, Jane Ellison said:<\/p>\n

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This government is committed to tackling tax evasion and avoidance wherever it occurs.<\/p>\n

The UK has one of the lowest tax gaps in the world. By investing \u00a31.8 billion since 2010 in boosting HMRC<\/abbr> compliance capabilities, we\u2019ve brought our tax gap down to its lowest ever level. And to make it even easier for people to pay the right tax in the future, we\u2019ve invested \u00a31.3 billion in new digital tools.<\/p>\n<\/blockquote>\n

HMRC<\/abbr>\u2019s Chief Executive, Jon Thompson, said:<\/p>\n

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These figures show we have successfully maintained a downward pressure on the tax gap in 2014-15, while collecting record revenues of \u00a3518 billion.<\/p>\n

The UK is an honest and compliant country when it comes to tax, as the vast majority of people and businesses pay what they owe, when they owe it. We should be proud that we meet our obligation as a nation in willingly paying for our public services, which is why we have one of the lowest tax gaps anywhere in the world.<\/p>\n

But if we are to ensure a fairer and more effective tax system, and more money for public services, we must keep up the pressure on the tax gap by relentlessly pursuing the small minority who seek to cheat their taxes through evasion, aggressive avoidance and organised crime.<\/p>\n<\/blockquote>\n

HMRC<\/abbr> has one of the most robust and transparent tax gap estimates in the world, with its methodology scrutinised by the International Monetary Fund and the National Audit Office. No other country publishes such a level of detail on an annual basis.<\/p>\n

In 2014 to 2015, HMRC<\/abbr> collected record revenues of almost \u00a3518 billion \u2013 almost \u00a312 billion more than in the previous year \u2013 as a result both of a growing economy and our effectiveness in clamping down on tax evasion and fraud. HMRC<\/abbr> also secured almost \u00a327 billion in record compliance yield.<\/p>\n

The government has invested an additional \u00a31.8 billion to tackle tax evasion, avoidance and non-compliance since 2010. This includes taking action to clamp down on the organised crime gangs behind the illicit trade in tobacco and alcohol, increasing resourcing on compliance, and an additional \u00a31.3 billion to transform HMRC<\/abbr> into one of the most advanced tax administrations in the world.<\/p>\n

This action has helped HMRC<\/abbr> secure around \u00a3130 billion in compliance yield since 2010 and bring in more than \u00a32.5 billion from offshore tax evaders since 2010.<\/p>\n

Notes to Editors<\/h2>\n
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  1. \n

    HMRC<\/abbr>\u2019s Measuring Tax Gaps 2016 and methodological annex documents are published here<\/a>.<\/p>\n<\/li>\n

  2. \n

    HMRC<\/abbr>\u2019s tax gap estimates are produced in accordance with the Code of Practice for Official Statistics, which assures objectivity and integrity. The methodology is judged by independent third parties to be robust, having been intensively scrutinised and given a clean bill of health by the International Monetary Fund and by the National Audit Office.<\/p>\n<\/li>\n

  3. \n

    The UK has one of the lowest tax gaps in the world. The tax gap is 34% in Italy, 23% in Mexico and 16.3% in the USA.<\/p>\n<\/li>\n

  4. Our actions to close the gap include:\n