Small businesses blamed by HMRC for 40% of the tax gap

The UK tax gap for 2017-18 was estimated to be £35bn which is 5.6% of theoretical tax liabilities. This is a small increase from 2015-16 when the percentage was 5.5%.

According to HMRC small businesses are responsible for 40% of the gap followed by large businesses at 22%. Criminals are the third largest component making up 14% of the gap.

The gap comprises the following behavioural components:

Behaviour                                                   £bn                         %

Failure to take reasonable care                  6.4                         18

Legal interpretation                                      6.2 ...