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Tax gap remains steady at 5.1%

The estimated tax gap for the 2020/21 tax year is 5.1% - the second lowest recorded percentage - and is unchanged from the previous year, according to the latest data from HMRC.

24 Jun 2022

The estimated tax gap for the 2020/21 tax year is 5.1% – the second lowest recorded percentage – and is unchanged from the previous year, according to the latest data from HMRC.

The annual Measuring Tax Gaps publication estimates the difference between the total amount of tax expected to be paid and the total amount of tax actually paid during the financial year. HMRC says that the majority of taxpayers pay the tax that is owed.

In monetary terms, the tax gap for the 2020/21 tax year is £32 billion. At 5.1%, there has been no change in the percentage tax gap compared to the previous year, although the monetary value has fallen by £2 billion from £34 billion in the 2019/20 tax year.

According to HMRC, the total tax due to be paid fell from £672 billion in 2019/20 to £635 billion in 2020/21 due to the economic impact of COVID-19.

Jonathan Athow, HMRC's Director General for Customer Strategy and Tax Design, said: 'The vast majority of taxpayers and businesses paid the correct amount of tax owed. We want to help everyone to get their tax right as the revenue we raise helps fund our vital public services.'

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020 7794 5757

Numera, 4th Floor Charles House, 108-110 Finchley Road, London NW3 5JJ

Numera is a trading name of Numera Partners LLP | Company Registration No. OC365787 | Place of Registration: England & Wales | Registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales.

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Numera is a newly established forward-thinking firm of chartered accountants, with over 25 years in experience of audit, accountancy, taxation and business advisory services.

We work with clients in a large variety of industries and sectors; from sole traders to multi-million pound turnover organisations. We aim to create and maintain a close relationship with our clients. By being so involved, we are able to identify opportunities for our clients as well as possible risks that our clients may be faced with.

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