Tackling the tax gap: where are we now?

Understanding the tax gap is crucial for HMRC. These statistics indicate which taxpayers cause the most issues and reasons why taxpayers do not declare and pay the tax on time. Statistics published with HMRC’s annual report provide insights into HMRC’s 2023-24 compliance activities – its efforts to tackle the tax gap – and the areas perceived to pose greatest risk (tinyurl.com/hmrcfistechnote).

HMRC’s compliance activities are influenced by several factors from new legislation and internal policies to external oversight and international initiatives. By understanding these influences we can better anticipate changes. As HMRC continues to evolve its strategies staying informed and adaptable will be key for advisers trying to navigate the complexities of tax compliance.

As HMRC ‘resources to risk’ this article combines these statistics HMRC’s compliance strategy and other factors to look forward and anticipate HMRC’s next steps to reduce...