UK tax gap falls to 6.4%
The government has announced that the tax gap for 2013/14 was 6.4% of tax due.
The tax gap, which is the difference between the amount of tax due and the amount collected, has fallen from 8.4% in 2005/06. The government estimates that this reduction in the percentage tax gap since 2005/06 represents an additional £57 billion in cumulative tax collected over the eight-year period.
According to HMRC the largest reduction is in the corporation tax gap which has halved since 2005/06, from 14% to 7% of tax liabilities. The downward trend applies to all sizes of businesses, with the overall reduction driven mainly by large businesses.
If you would like to discuss your tax affairs in more detail, please don’t hesitate in contacting Prime today.