UK lost £5.5bn to tax evasion in 2023, 81% by small businesses - HMRC

HM Revenue & Customs (HMRC) has no specific strategy to cut tax evasion, which it estimates cost UK£5.5 billion (US$7.2 billion) in 2023, equivalent to 0.7% the total theoretical liabilities, according to a National Audit Office (NAO) report. Instead, HMRC prefers to flex its resources, allocating where it sees the risk, to prevent the tax gap from increasing.

HM Revenue & Customs (HMRC) has no specific strategy to cut tax evasion, which it estimates cost UK£5.5 billion (US$7.2 billion) in 2023, equivalent to 0.7% the total theoretical liabilities, according to a National Audit Office (NAO) report. [1] Instead, HMRC prefers to flex its resources, allocating where it sees the risk, to prevent the tax gap from increasing.