tax gap Archives - WRLO Accountants

Tax gap at record high

WRLO Accountants — Fri, 05 Jul 2024 16:29:28 +0000

The UK’s tax gap estimate rose to a record to £39.8 billion in 2022/23 as small businesses accounted for almost two thirds of unpaid tax, according to HMRC’s data. The tax gap was 4.8%, which is the difference between the amount of tax that should be paid to HMRC and what is actually paid. The tax gap estimate for corporation tax for small businesses rose to £10.9 billion, while the tax gap for total corporation tax was £13.7 billion. John Barnett, Chair of the Chartered Institute of Taxation’s Technical Policy and Oversight Committee, said: ‘Critics of HMRC can point to a record amount – nearly £40 billion – not being collected, but HMRC can legitimately point out that they are bringing in a record share of the expected tax take. ‘That both these things can be true simultaneously tells us more about current tax levels than anything else. ‘These figures show there is plenty of work for HMRC to do in a range of areas to reduce the tax gap. However, we should not lose sight of the fact that their record, collecting more than 95% of tax due, compares well internationally.’ Internet links: GOV.UK Chartered Institute of Taxation website

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July 2019 news

WRLO Accountants — Thu, 04 Jul 2019 20:57:17 +0000

In this month’s Enews we report on the tax gap, preparing employees for EU exit and the latest on MTD for VAT. We also update you on the latest guidance for employers, proposed measures to ensure small businesses get paid on time and self assessment payment on account confusion. Finally, we look at the new online tool for international investors and the consultation on the operation of insurance premium tax. Tax gap remains low Preparing the workforce for EU Exit MTD for VAT latest Employer Bulletin – latest guidance New measures to ensure small businesses get paid on time Payment on account confusion UK Investment Support Directory Consultation on the operation of Insurance Premium Tax Tax gap remains low HMRC has published a report showing that the UK tax gap in 2017/18 is estimated to be £35 billion. This is 5.6% of total theoretical tax liabilities, and a small increase of 0.1% from 5.5% in 2016/17. HMRC therefore secured 94.4% of all tax due. The tax gap is the difference between the amount of tax that should be paid to HMRC compared to what is actually paid. Further details in the report show: the overall tax gap has fallen from […]

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July 2018 news

WRLO Accountants — Mon, 09 Jul 2018 11:08:19 +0000

In this month’s Enews we report on the Supreme Court’s ruling on workers’ rights and the latest guidance from HMRC for employers. We also consider the latest tax gap figures and HMRC’s efforts to stop fraudsters. With new rules to introduce a VAT reverse charge for construction services and an extension to the easement for RTI payroll penalties there are lots to consider. Workers’ rights for Pimlico Plumber Latest guidance for employers UK ‘tax gap’ falls to 5.7% HMRC extends RTI late filing easement until April 2019 HMRC saves public £2.4M by stopping fraudsters VAT reverse charge for construction services consultation Enterprise Management Incentive continues Workers’ rights for Pimlico Plumber A plumber has won a legal battle for working rights in a Supreme Court ruling. The Supreme court has backed up an earlier ruling by an Employment Tribunal in the case of a contractor engaged by Pimlico Plumbers. Plumber Gary Smith carried out plumbing jobs for Pimlico Plumbers. He was VAT registered and paid tax on a self employed tax basis. The Supreme Court has ruled that Gary Smith was entitled to workers’ rights and confirmed that the Employment Tribunal was ‘entitled to conclude’ that Mr Smith was a worker. As […]

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