In Focus
Unpaid taxes: the ‘tax gap’
HM Revenue and Customs (HMRC) produces estimates of the tax gap—the tax revenue HMRC should receive but does not. Its most recent estimate for 2019/20 is £35 billion, or approximately 5% of total tax liabilities. As a percentage of total taxes, the gap has been declining in recent years. The Government’s tax strategy includes measures to reduce it further. However, some commentators have argued these need more careful consideration.