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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 ...
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