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HMRC criticised over £32bn ‘tax gap’ estimate

Tax experts say shortfall between expected income and actual receipts underplays true scale of fraud in 2020-21 financial year HMRC was accused on Thursday of underestimating the tax gap – the difference between the expected income for the exchequer and actual receipts – after official figures showed it was unchanged during the first year of the pandemic. The Revenue said there was a 5.1% shortfall worth £32bn in the 2020-21 financial year, the same as the period before the pandemic took effect. It said fraud accounted for £2bn of the total – despite widespread concerns that tens of billions of pounds in government pandemic spending was lost to fraud. Continue reading...

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