# The tax gap: what isn’t collected, and what collecting costs

url: https://whereyourmoneygoes.co.uk/tax-gap/
updated: 29 September 2026
licence: Our words, analysis, charts and derived calculations: CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/), credit [Tekstak Ltd](https://tek-stak.co.uk). Figures: each source's own licence, listed under Sources.
publisher: [Tekstak Ltd](https://tek-stak.co.uk)

# The tax gap: what isn’t collected, and what collecting costs



Last updated 29 September 2026.
Figures refresh every night. [How each figure is worked out](/methodology/).





HMRC estimates that **£59.2bn** of tax was owed but not paid in 2024-25, **6.4%** of the tax that should have been paid, against 7.5% in 2005-06. The largest part is failure to take reasonable care (£20.8bn); avoidance accounts for £0.8bn. These are estimates from HMRC’s 2026 edition; the latest years are partly projected and are revised.



Figure as of 23 June 2026. Source:
[HM Revenue and Customs](https://assets.publishing.service.gov.uk/media/6a314f53141f0690ad5fa41e/Measuring_tax_gap_online_tables_2026.xlsx).





## Key figures



- £59.2bnTax owed but not paid, 2024-25

£52.8bn in 2023-24
As of 23 June 2026
- 6.4%Of the tax that should have been paid


As of 23 June 2026
- £36.7bnOwed by small businesses, 2024-25


As of 23 June 2026
- £0.8bnOf which avoidance, 2024-25


As of 23 June 2026
- £50.2bnBrought in or protected by HMRC compliance work, 2025-26


As of 9 July 2026




Source: [HM Revenue and Customs](https://assets.publishing.service.gov.uk/media/6a314f53141f0690ad5fa41e/Measuring_tax_gap_online_tables_2026.xlsx).





## What is the short version?



- **An estimate of what is missing,** not a count: HMRC models what should have been paid and compares it with what was.
- **Most of it is not avoidance or evasion:** failure to take reasonable care and error by small businesses are the largest parts.
- **It has grown since 2019-20** in pounds and as a share of tax due; the latest edition also revised earlier years up.
- **Views differ** on whether it is understated and on how much more enforcement would bring in; named voices are below.






## How big it is, over the longest run available




**The tax gap, £ billion and % of tax due**








As a share of tax due: 2005-06 7.5%; 2010-11 6.3%; 2015-16 5.8%; 2020-21 5.7%; 2024-25 6.4%. The latest two years are partly projected.




**The numbers behind this chart**





| Year | Tax gap, £ billion |
| --- | --- |
| 2005-06 | £32.8bn |
| 2006-07 | £31.1bn |
| 2007-08 | £30.6bn |
| 2008-09 | £32.0bn |
| 2009-10 | £28.6bn |
| 2010-11 | £30.2bn |
| 2011-12 | £30.6bn |
| 2012-13 | £33.7bn |
| 2013-14 | £36.5bn |
| 2014-15 | £32.8bn |
| 2015-16 | £33.0bn |
| 2016-17 | £33.1bn |
| 2017-18 | £32.8bn |
| 2018-19 | £34.4bn |
| 2019-20 | £40.1bn |
| 2020-21 | £36.9bn |
| 2021-22 | £44.6bn |
| 2022-23 | £55.3bn |
| 2023-24 | £52.8bn |
| 2024-25 | £59.2bn |






Figure as of 23 June 2026. Source:
[HM Revenue and Customs](https://assets.publishing.service.gov.uk/media/6a314f53141f0690ad5fa41e/Measuring_tax_gap_online_tables_2026.xlsx).






| Tax | £ billion | % of that tax due |
| --- | --- | --- |
| VATDetails | £12.1bn | 6.6% |
| % of that tax due6.6% | | |
| excise dutyDetails | £2.9bn | 5.5% |
| % of that tax due5.5% | | |
| Income Tax, NICs, Capital Gains TaxDetails | £20.9bn | 4.0% |
| % of that tax due4.0% | | |
| Corporation TaxDetails | £21.0bn | 18.1% |
| % of that tax due18.1% | | |
| other taxesDetails | £2.3bn | 4.6% |
| % of that tax due4.6% | | |





Source: HM Revenue and Customs, [Measuring tax gaps, 2026 edition: tables](https://assets.publishing.service.gov.uk/media/6a314f53141f0690ad5fa41e/Measuring_tax_gap_online_tables_2026.xlsx), published 23 June 2026.





## Why it isn’t paid



HMRC splits the gap by the behaviour behind it, from simple mistakes to criminal attacks on the tax system.
"Failure to take reasonable care" means carelessness rather than intent; "legal interpretation" is where HMRC
and a taxpayer read the law differently; "non-payment" is tax that was declared but not paid.




**The tax gap by behaviour, £ billion**








HMRC publishes estimates by behaviour from 2019-20 only.




**The numbers behind this chart**





| Year | Failure to take reasonable care | Error | Evasion | Legal interpretation | Non-payment |
| --- | --- | --- | --- | --- | --- |
| 2019-20Details | £11.1bn | £5.8bn | £4.2bn | £4.3bn | £4.6bn |
| Error£5.8bnEvasion£4.2bnLegal interpretation£4.3bnNon-payment£4.6bn | | | | | |
| 2020-21Details | £11.2bn | £5.3bn | £4.2bn | £3.8bn | £4.9bn |
| Error£5.3bnEvasion£4.2bnLegal interpretation£3.8bnNon-payment£4.9bn | | | | | |
| 2021-22Details | £15.1bn | £7.0bn | £5.5bn | £4.1bn | £5.3bn |
| Error£7.0bnEvasion£5.5bnLegal interpretation£4.1bnNon-payment£5.3bn | | | | | |
| 2022-23Details | £17.9bn | £8.4bn | £6.3bn | £6.2bn | £6.7bn |
| Error£8.4bnEvasion£6.3bnLegal interpretation£6.2bnNon-payment£6.7bn | | | | | |
| 2023-24Details | £18.2bn | £8.1bn | £6.3bn | £6.2bn | £5.6bn |
| Error£8.1bnEvasion£6.3bnLegal interpretation£6.2bnNon-payment£5.6bn | | | | | |
| 2024-25Details | £20.8bn | £9.3bn | £7.1bn | £6.9bn | £5.7bn |
| Error£9.3bnEvasion£7.1bnLegal interpretation£6.9bnNon-payment£5.7bn | | | | | |






Figure as of 23 June 2026. Source:
[HM Revenue and Customs](https://assets.publishing.service.gov.uk/media/6a314f53141f0690ad5fa41e/Measuring_tax_gap_online_tables_2026.xlsx).






| Part of the gap | From | To | Change | Share of the gap |
| --- | --- | --- | --- | --- |
| Failure to take reasonable careDetails | £11.1bn (2019-20) | £20.8bn (2024-25) | +£9.7bn | +7.5 points |
| To£20.8bn (2024-25)Change+£9.7bnShare of the gap+7.5 points | | | | |
| ErrorDetails | £5.8bn (2019-20) | £9.3bn (2024-25) | +£3.5bn | +1.2 points |
| To£9.3bn (2024-25)Change+£3.5bnShare of the gap+1.2 points | | | | |
| EvasionDetails | £4.2bn (2019-20) | £7.1bn (2024-25) | +£2.9bn | +1.5 points |
| To£7.1bn (2024-25)Change+£2.9bnShare of the gap+1.5 points | | | | |
| Legal interpretationDetails | £4.3bn (2019-20) | £6.9bn (2024-25) | +£2.6bn | +0.9 points |
| To£6.9bn (2024-25)Change+£2.6bnShare of the gap+0.9 points | | | | |
| Non-paymentDetails | £4.6bn (2019-20) | £5.7bn (2024-25) | +£1.1bn | −1.8 points |
| To£5.7bn (2024-25)Change+£1.1bnShare of the gap−1.8 points | | | | |
| Hidden economyDetails | £3.3bn (2019-20) | £3.6bn (2024-25) | +£0.3bn | −2.1 points |
| To£3.6bn (2024-25)Change+£0.3bnShare of the gap−2.1 points | | | | |
| AvoidanceDetails | £0.9bn (2019-20) | £0.8bn (2024-25) | −£0.1bn | −0.9 points |
| To£0.8bn (2024-25)Change−£0.1bnShare of the gap−0.9 points | | | | |
| Criminal attacksDetails | £5.9bn (2019-20) | £5.0bn (2024-25) | −£0.9bn | −6.3 points |
| To£5.0bn (2024-25)Change−£0.9bnShare of the gap−6.3 points | | | | |







## Who owes it




**The tax gap by who owes it, £ billion**










**The numbers behind this chart**





| Year | Small businesses | Large businesses | Criminals | Mid-sized businesses | Wealthy |
| --- | --- | --- | --- | --- | --- |
| 2005-06Details | £10.6bn | £7.6bn | £7.3bn | £4.3bn | £1.2bn |
| Large businesses£7.6bnCriminals£7.3bnMid-sized businesses£4.3bnWealthy£1.2bn | | | | | |
| 2006-07Details | £10.0bn | £7.3bn | £6.3bn | £4.2bn | £1.2bn |
| Large businesses£7.3bnCriminals£6.3bnMid-sized businesses£4.2bnWealthy£1.2bn | | | | | |
| 2007-08Details | £10.4bn | £6.8bn | £5.4bn | £4.2bn | £1.5bn |
| Large businesses£6.8bnCriminals£5.4bnMid-sized businesses£4.2bnWealthy£1.5bn | | | | | |
| 2008-09Details | £10.5bn | £6.8bn | £6.1bn | £5.2bn | £1.3bn |
| Large businesses£6.8bnCriminals£6.1bnMid-sized businesses£5.2bnWealthy£1.3bn | | | | | |
| 2009-10Details | £10.1bn | £5.9bn | £4.9bn | £4.5bn | £1.3bn |
| Large businesses£5.9bnCriminals£4.9bnMid-sized businesses£4.5bnWealthy£1.3bn | | | | | |
| 2010-11Details | £11.3bn | £6.6bn | £4.8bn | £4.2bn | £1.6bn |
| Large businesses£6.6bnCriminals£4.8bnMid-sized businesses£4.2bnWealthy£1.6bn | | | | | |
| 2011-12Details | £11.3bn | £5.8bn | £5.0bn | £4.7bn | £1.7bn |
| Large businesses£5.8bnCriminals£5.0bnMid-sized businesses£4.7bnWealthy£1.7bn | | | | | |
| 2012-13Details | £13.3bn | £5.4bn | £5.1bn | £5.3bn | £2.1bn |
| Large businesses£5.4bnCriminals£5.1bnMid-sized businesses£5.3bnWealthy£2.1bn | | | | | |
| 2013-14Details | £14.2bn | £5.6bn | £6.3bn | £5.4bn | £2.3bn |
| Large businesses£5.6bnCriminals£6.3bnMid-sized businesses£5.4bnWealthy£2.3bn | | | | | |
| 2014-15Details | £13.5bn | £5.4bn | £4.9bn | £5.1bn | £1.8bn |
| Large businesses£5.4bnCriminals£4.9bnMid-sized businesses£5.1bnWealthy£1.8bn | | | | | |
| 2015-16Details | £12.9bn | £5.5bn | £5.0bn | £5.0bn | £1.6bn |
| Large businesses£5.5bnCriminals£5.0bnMid-sized businesses£5.0bnWealthy£1.6bn | | | | | |
| 2016-17Details | £14.1bn | £5.3bn | £6.7bn | £3.2bn | £1.6bn |
| Large businesses£5.3bnCriminals£6.7bnMid-sized businesses£3.2bnWealthy£1.6bn | | | | | |
| 2017-18Details | £13.2bn | £5.6bn | £6.2bn | £3.9bn | £1.6bn |
| Large businesses£5.6bnCriminals£6.2bnMid-sized businesses£3.9bnWealthy£1.6bn | | | | | |
| 2018-19Details | £16.2bn | £5.1bn | £5.8bn | £3.5bn | £1.6bn |
| Large businesses£5.1bnCriminals£5.8bnMid-sized businesses£3.5bnWealthy£1.6bn | | | | | |
| 2019-20Details | £21.3bn | £5.1bn | £5.9bn | £4.2bn | £1.5bn |
| Large businesses£5.1bnCriminals£5.9bnMid-sized businesses£4.2bnWealthy£1.5bn | | | | | |
| 2020-21Details | £21.3bn | £4.4bn | £4.7bn | £3.4bn | £1.5bn |
| Large businesses£4.4bnCriminals£4.7bnMid-sized businesses£3.4bnWealthy£1.5bn | | | | | |
| 2021-22Details | £27.8bn | £4.6bn | £4.5bn | £3.6bn | £2.0bn |
| Large businesses£4.6bnCriminals£4.5bnMid-sized businesses£3.6bnWealthy£2.0bn | | | | | |
| 2022-23Details | £34.0bn | £7.2bn | £5.0bn | £4.6bn | £2.3bn |
| Large businesses£7.2bnCriminals£5.0bnMid-sized businesses£4.6bnWealthy£2.3bn | | | | | |
| 2023-24Details | £32.5bn | £7.0bn | £4.8bn | £3.7bn | £2.5bn |
| Large businesses£7.0bnCriminals£4.8bnMid-sized businesses£3.7bnWealthy£2.5bn | | | | | |
| 2024-25Details | £36.7bn | £7.1bn | £5.0bn | £4.1bn | £3.6bn |
| Large businesses£7.1bnCriminals£5.0bnMid-sized businesses£4.1bnWealthy£3.6bn | | | | | |






Figure as of 23 June 2026. Source:
[HM Revenue and Customs](https://assets.publishing.service.gov.uk/media/6a314f53141f0690ad5fa41e/Measuring_tax_gap_online_tables_2026.xlsx).






| Part of the gap | From | To | Change | Share of the gap |
| --- | --- | --- | --- | --- |
| Small businessesDetails | £21.3bn (2019-20) | £36.7bn (2024-25) | +£15.4bn | +8.9 points |
| To£36.7bn (2024-25)Change+£15.4bnShare of the gap+8.9 points | | | | |
| WealthyDetails | £1.5bn (2019-20) | £3.6bn (2024-25) | +£2.1bn | +2.3 points |
| To£3.6bn (2024-25)Change+£2.1bnShare of the gap+2.3 points | | | | |
| Large businessesDetails | £5.1bn (2019-20) | £7.1bn (2024-25) | +£2.0bn | −0.7 points |
| To£7.1bn (2024-25)Change+£2.0bnShare of the gap−0.7 points | | | | |
| IndividualsDetails | £2.1bn (2019-20) | £2.7bn (2024-25) | +£0.6bn | −0.7 points |
| To£2.7bn (2024-25)Change+£0.6bnShare of the gap−0.7 points | | | | |
| Mid-sized businessesDetails | £4.2bn (2019-20) | £4.1bn (2024-25) | −£0.1bn | −3.5 points |
| To£4.1bn (2024-25)Change−£0.1bnShare of the gap−3.5 points | | | | |
| CriminalsDetails | £5.9bn (2019-20) | £5.0bn (2024-25) | −£0.9bn | −6.3 points |
| To£5.0bn (2024-25)Change−£0.9bnShare of the gap−6.3 points | | | | |







| Part of the gap | From | To | Change | Share of the gap |
| --- | --- | --- | --- | --- |
| Corporation TaxDetails | £10.3bn (2019-20) | £21.0bn (2024-25) | +£10.7bn | +9.8 points |
| To£21.0bn (2024-25)Change+£10.7bnShare of the gap+9.8 points | | | | |
| Income Tax, NICs, Capital Gains TaxDetails | £12.4bn (2019-20) | £20.9bn (2024-25) | +£8.5bn | +4.4 points |
| To£20.9bn (2024-25)Change+£8.5bnShare of the gap+4.4 points | | | | |
| other taxesDetails | £2.0bn (2019-20) | £2.3bn (2024-25) | +£0.3bn | −1.1 points |
| To£2.3bn (2024-25)Change+£0.3bnShare of the gap−1.1 points | | | | |
| VATDetails | £12.2bn (2019-20) | £12.1bn (2024-25) | −£0.1bn | −10.0 points |
| To£12.1bn (2024-25)Change−£0.1bnShare of the gap−10.0 points | | | | |
| excise dutyDetails | £3.1bn (2019-20) | £2.9bn (2024-25) | −£0.2bn | −2.8 points |
| To£2.9bn (2024-25)Change−£0.2bnShare of the gap−2.8 points | | | | |







## Avoidance: its share, the schemes named, and what closing them was costed to raise



Avoidance is using the law to get a tax advantage Parliament did not intend. It is legal until a court or
new law says otherwise. It is a small and shrinking part of the gap in HMRC’s estimates.




**Avoidance in the tax gap, £ billion**








As a share of the whole gap: 15% in 2005-06, 1% in 2024-25.




**The numbers behind this chart**





| Year | Avoidance |
| --- | --- |
| 2005-06 | £4.8bn |
| 2006-07 | £4.6bn |
| 2007-08 | £3.6bn |
| 2008-09 | £3.4bn |
| 2009-10 | £3.1bn |
| 2010-11 | £3.6bn |
| 2011-12 | £2.9bn |
| 2012-13 | £2.3bn |
| 2013-14 | £2.1bn |
| 2014-15 | £1.7bn |
| 2015-16 | £1.5bn |
| 2016-17 | £1.5bn |
| 2017-18 | £1.0bn |
| 2018-19 | £0.9bn |
| 2019-20 | £0.9bn |
| 2020-21 | £0.7bn |
| 2021-22 | £0.7bn |
| 2022-23 | £0.7bn |
| 2023-24 | £0.8bn |
| 2024-25 | £0.8bn |






Figure as of 23 June 2026. Source:
[HM Revenue and Customs](https://assets.publishing.service.gov.uk/media/6a314f53141f0690ad5fa41e/Measuring_tax_gap_online_tables_2026.xlsx).




HMRC can publish the names of avoidance schemes and the people who promote them. On
24 September 2026 its list had **190** entries, and 55 schemes were under a stop notice, which requires the promoter to stop selling them.
The independent panel that advises on HMRC’s general anti-abuse rule has published 32 opinions since 2017.




**Entries on HMRC’s list of named schemes and promoters, by year first published**



- 1. 2022

1
- 2. 2023

15
- 3. 2024

63
- 4. 2025

68
- 5. 2026

29





Names are removed from the list after a period set in law, so earlier years count only entries still listed.




**Show as a table**





| Name | Entries |
| --- | --- |
| 1. 2022 | 1 |
| 2. 2023 | 15 |
| 3. 2024 | 63 |
| 4. 2025 | 68 |
| 5. 2026 | 29 |






Figure as of 24 September 2026. Source:
[HM Revenue and Customs](https://www.gov.uk/government/publications/named-tax-avoidance-schemes-promoters-enablers-and-suppliers).






| Measure | Figure | Period | Note |
| --- | --- | --- | --- |
| Avoidance schemes HMRC had named publicly, from gaining the power to the end of 2024Details | 135 | To the end of 2024 | And 129 promoters and 50 connected persons. Names are removed after a legal time limit. |
| PeriodTo the end of 2024NoteAnd 129 promoters and 50 connected persons. Names are removed after a legal time limit. | | | |
| People using a marketed avoidance schemeDetails | 36,000 | 2022-23 | HMRC's previous estimate was about 31,000 in 2020-21. |
| Period2022-23NoteHMRC's previous estimate was about 31,000 in 2020-21. | | | |
| Penalties on promoters who ignored stop noticesDetails | £41m | To the end of 2024 | 21 penalties. HMRC also required 48 schemes to be registered under the disclosure rules (DOTAS). |
| PeriodTo the end of 2024Note21 penalties. HMRC also required 48 schemes to be registered under the disclosure rules (DOTAS). | | | |







| Measure | Announced | Final year costed | Year by year |
| --- | --- | --- | --- |
| [Measures to close the tax gap (Autumn Budget 2024 package: umbrella companies, compliance and debt staff, systems, and closing specific arrangements)](https://www.gov.uk/government/publications/autumn-budget-2024)Details | Autumn Budget 2024 | £6.5bn (2029-30) | 2024-25: £350m; 2025-26: £1.4bn; 2026-27: £3.4bn; 2027-28: £4.2bn; 2028-29: £5.1bn; 2029-30: £6.5bn |
| AnnouncedAutumn Budget 2024Year by year2024-25: £350m; 2025-26: £1.4bn; 2026-27: £3.4bn; 2027-28: £4.2bn; 2028-29: £5.1bn; 2029-30: £6.5bn | | | |
| [Of which: 5,000 more HMRC compliance staff](https://www.gov.uk/government/publications/autumn-budget-2024)Details | Autumn Budget 2024 | £2.7bn (2029-30) | 2024-25: £10m; 2025-26: £165m; 2026-27: £540m; 2027-28: £1.2bn; 2028-29: £1.9bn; 2029-30: £2.7bn |
| AnnouncedAutumn Budget 2024Year by year2024-25: £10m; 2025-26: £165m; 2026-27: £540m; 2027-28: £1.2bn; 2028-29: £1.9bn; 2029-30: £2.7bn | | | |
| [Of which: ending contrived company car ownership arrangements](https://www.gov.uk/government/publications/autumn-budget-2024)Details | Autumn Budget 2024 | £175m (2029-30) | 2024-25: £0m; 2025-26: £0m; 2026-27: £275m; 2027-28: £220m; 2028-29: £195m; 2029-30: £175m |
| AnnouncedAutumn Budget 2024Year by year2024-25: £0m; 2025-26: £0m; 2026-27: £275m; 2027-28: £220m; 2028-29: £195m; 2029-30: £175m | | | |
| [Of which: umbrella company non-compliance (PAYE moved to agencies)](https://www.gov.uk/government/publications/autumn-budget-2024)Details | Autumn Budget 2024 | £500m (2029-30) | 2024-25: £0m; 2025-26: £75m; 2026-27: £895m; 2027-28: £740m; 2028-29: £635m; 2029-30: £500m |
| AnnouncedAutumn Budget 2024Year by year2024-25: £0m; 2025-26: £75m; 2026-27: £895m; 2027-28: £740m; 2028-29: £635m; 2029-30: £500m | | | |
| [500 more HMRC compliance staff](https://www.gov.uk/government/publications/supporting-documents-for-spring-statement-2025)Details | Spring Statement 2025 | £95m (2029-30) | 2024-25: £0m; 2025-26: £0m; 2026-27: £15m; 2027-28: £50m; 2028-29: £80m; 2029-30: £95m |
| AnnouncedSpring Statement 2025Year by year2024-25: £0m; 2025-26: £0m; 2026-27: £15m; 2027-28: £50m; 2028-29: £80m; 2029-30: £95m | | | |
| [Further measures to close the tax gap](https://www.gov.uk/government/publications/supporting-documents-for-budget-2025)Details | Budget 2025 | £2.6bn (2030-31) | 2025-26: £75m; 2026-27: £435m; 2027-28: £695m; 2028-29: £1.3bn; 2029-30: £2.4bn; 2030-31: £2.6bn |
| AnnouncedBudget 2025Year by year2025-26: £75m; 2026-27: £435m; 2027-28: £695m; 2028-29: £1.3bn; 2029-30: £2.4bn; 2030-31: £2.6bn | | | |
| [Of which: tighter share exchange and reconstruction rules](https://assets.publishing.service.gov.uk/media/692872fd2a37784b16ecf676/Budget_2025-Policy_Costings.pdf)Details | Budget 2025 | £20m (2030-31) | 2025-26: £0m; 2026-27: £20m; 2027-28: £20m; 2028-29: £20m; 2029-30: £20m; 2030-31: £20m |
| AnnouncedBudget 2025Year by year2025-26: £0m; 2026-27: £20m; 2027-28: £20m; 2028-29: £20m; 2029-30: £20m; 2030-31: £20m | | | |
| [Of which: stronger powers over tax advisers who do not comply](https://assets.publishing.service.gov.uk/media/692872fd2a37784b16ecf676/Budget_2025-Policy_Costings.pdf)Details | Budget 2025 | £55m (2030-31) | 2025-26: £0m; 2026-27: £15m; 2027-28: £50m; 2028-29: £55m; 2029-30: £55m; 2030-31: £55m |
| AnnouncedBudget 2025Year by year2025-26: £0m; 2026-27: £15m; 2027-28: £50m; 2028-29: £55m; 2029-30: £55m; 2030-31: £55m | | | |
| [Of which: third-party data on interest and card sales](https://assets.publishing.service.gov.uk/media/692872fd2a37784b16ecf676/Budget_2025-Policy_Costings.pdf)Details | Budget 2025 | £465m (2030-31) | 2025-26: £0m; 2026-27: £0m; 2027-28: £0m; 2028-29: £30m; 2029-30: £350m; 2030-31: £465m |
| AnnouncedBudget 2025Year by year2025-26: £0m; 2026-27: £0m; 2027-28: £0m; 2028-29: £30m; 2029-30: £350m; 2030-31: £465m | | | |
| [Loan Charge: government response to the independent review (a cost)](https://www.gov.uk/government/publications/supporting-documents-for-budget-2025)Details | Budget 2025 | −£95m (2030-31) | 2025-26: −£25m; 2026-27: −£95m; 2027-28: −£30m; 2028-29: £35m; 2029-30: −£155m; 2030-31: −£95m |
| AnnouncedBudget 2025Year by year2025-26: −£25m; 2026-27: −£95m; 2027-28: −£30m; 2028-29: £35m; 2029-30: −£155m; 2030-31: −£95m | | | |





The names on HMRC’s list, and the arrangements themselves, are on HMRC’s own pages. This site counts them and does not describe how any of them work.





## Evasion, the hidden economy and enforcement





| Measure | Figure | Year | Note |
| --- | --- | --- | --- |
| Compliance yield: tax HMRC says its compliance work brought in or protectedDetails | £50.2bn | 2025-26 | £48.0 billion in 2024-25. It includes cash collected, future revenue protected and losses prevented, so it is not all cash in the year. |
| Year2025-26Note£48.0 billion in 2024-25. It includes cash collected, future revenue protected and losses prevented, so it is not all cash in the year. | | | |
| HMRC's cost of collecting each £1 of taxDetails | 0.51p | 2025-26 | Unchanged since 2019-20 on the current method. |
| Year2025-26NoteUnchanged since 2019-20 on the current method. | | | |
| Total tax revenue collected by HMRCDetails | £966.4bn | 2025-26 | |
| Year2025-26 | | | |
| Criminal prosecutions by HMRC's Fraud Investigation ServiceDetails | 300 | 2025-26 | 260 convictions, a court success rate of 87%. |
| Year2025-26Note260 convictions, a court success rate of 87%. | | | |
| Positive charging decisions (cases where a prosecutor decided to charge)Details | 468 | 2025-26 | 557 in 2024-25. |
| Year2025-26Note557 in 2024-25. | | | |
| Tax repaid by HMRCDetails | £159.1bn | 2025-26 | VAT repayments were £115.7 billion. Income tax repayments are not published separately. |
| Year2025-26NoteVAT repayments were £115.7 billion. Income tax repayments are not published separately. | | | |
| PAYE taxpayers who paid too much because of an error in State Pension figures, at the peakDetails | 1,400,000 | 2024-25 | An average of £1.76 to £2.30 a year for a basic-rate taxpayer. |
| Year2024-25NoteAn average of £1.76 to £2.30 a year for a basic-rate taxpayer. | | | |





### What the auditors and MPs found




National Audit Office and Public Accounts Committee reports on HMRC enforcement


Published by

Either body
National Audit OfficePublic Accounts Committee

Sort

As listedNewest firstOldest first




- [Taxing large businesses](https://www.nao.org.uk/reports/taxing-large-businesses/)
ByNational Audit OfficeDate27 Feb 2026





**Details**


What it foundFound that large businesses rate their dealings with HMRC highly and that the large-business tax gap is low relative to revenue. Large businesses rate their experience of dealing with HMRC highly, relative to other customer groups, and the size of the large-business tax gap, relative to revenue, is low.
- [Collecting the right tax from wealthy individuals](https://www.nao.org.uk/reports/collecting-the-right-tax-from-wealthy-individuals/)
ByNational Audit OfficeDate16 May 2025





**Details**


What it foundCompliance yield from wealthy people rose from £2.2 billion in 2019-20 to £5.2 billion in 2023-24; some 910 full-time staff deal with 850,000 wealthy individuals. All 850,000 wealthy individuals are dealt with by the wealthy compliance team, comprising some 910 full-time equivalent staff.
- [The administrative cost of the tax system](https://www.nao.org.uk/wp-content/uploads/2025/02/the-administrative-cost-of-the-tax-system.pdf)
ByNational Audit OfficeDate10 Feb 2025





**Details**


What it foundLooked at what running the tax system costs government and the businesses and people who pay tax.
- [Collecting the right tax from wealthy individuals](https://publications.parliament.uk/pa/cm5901/cmselect/cmpubacc/827/report.html)
ByPublic Accounts CommitteeDate16 Jul 2025





**Details**


What it foundSaid HMRC’s partial estimate of offshore tax evasion looked too low given the wealth UK residents hold overseas. its partial estimate of offshore tax evasion, at £0.3 billion, seems implausibly low given the huge wealth, £849 billion in offshore bank accounts in 2019, UK residents hold in overseas accounts.
- [Tax evasion in the retail sector](https://committees.parliament.uk/publications/46578/documents/238041/default/)
ByPublic Accounts CommitteeDate12 Feb 2025





**Details**


What it foundReported that prosecutions from HMRC’s criminal investigations had fallen. The number of prosecutions resulting from HMRC’s criminal investigations reduced from 749 in 2018–19 to 344 in 2023–24.
- [Large business tax compliance](https://committees.parliament.uk/publications/54140/documents/301324/default/)
ByPublic Accounts CommitteeDate10 Jul 2026





**Details**


What it foundFound HMRC’s approach to large businesses generally working well, but that where businesses do not cooperate HMRC seems reluctant to make full use of its available powers. HMRC’s approach to collecting tax from large businesses is generally working well and achieving good return on investment.






## The other side: tax repaid and overpaid



HMRC also pays money back: £159.1bn in 2025-26, most of it VAT reclaimed by businesses.
Income tax repayments are not published separately. HMRC’s annual report also records that an error in
State Pension figures meant about 1,400,000 PAYE taxpayers paid a little too much at the peak.
Collecting each £1 of tax costs HMRC about 0.51p.





## The tax gap and benefit fraud and error, on the same scale




**The tax gap and benefit fraud and error, £ billion, same scale**








Definitions: the tax gap is HMRC’s estimate of tax that should in theory have been paid and was not, from all causes including error and non-payment. Benefit fraud and error is DWP’s estimate of benefit paid that should not have been, from fraud, claimant error and official error, in Great Britain. Both are estimates, not counts; both years run from April.




**The numbers behind this chart**





| Year | Tax gap (tax owed, not paid) | Benefit overpaid through fraud and error | Of which benefit fraud | Benefit underpaid (official error) |
| --- | --- | --- | --- | --- |
| 2005-06Details | £32.8bn | £2.5bn | £0.6bn | £0.4bn |
| Benefit overpaid through fraud and error£2.5bnOf which benefit fraud£0.6bnBenefit underpaid (official error)£0.4bn | | | | |
| 2006-07Details | £31.1bn | £2.6bn | £0.8bn | £0.4bn |
| Benefit overpaid through fraud and error£2.6bnOf which benefit fraud£0.8bnBenefit underpaid (official error)£0.4bn | | | | |
| 2007-08Details | £30.6bn | £2.6bn | £0.8bn | £0.4bn |
| Benefit overpaid through fraud and error£2.6bnOf which benefit fraud£0.8bnBenefit underpaid (official error)£0.4bn | | | | |
| 2008-09Details | £32.0bn | £2.9bn | £1.0bn | £0.5bn |
| Benefit overpaid through fraud and error£2.9bnOf which benefit fraud£1.0bnBenefit underpaid (official error)£0.5bn | | | | |
| 2009-10Details | £28.6bn | £3.3bn | £1.1bn | £0.5bn |
| Benefit overpaid through fraud and error£3.3bnOf which benefit fraud£1.1bnBenefit underpaid (official error)£0.5bn | | | | |
| 2010-11Details | £30.2bn | £3.2bn | £1.2bn | £0.4bn |
| Benefit overpaid through fraud and error£3.2bnOf which benefit fraud£1.2bnBenefit underpaid (official error)£0.4bn | | | | |
| 2011-12Details | £30.6bn | £3.4bn | £1.2bn | £0.4bn |
| Benefit overpaid through fraud and error£3.4bnOf which benefit fraud£1.2bnBenefit underpaid (official error)£0.4bn | | | | |
| 2012-13Details | £33.7bn | £3.5bn | £1.2bn | £0.5bn |
| Benefit overpaid through fraud and error£3.5bnOf which benefit fraud£1.2bnBenefit underpaid (official error)£0.5bn | | | | |
| 2013-14Details | £36.5bn | £3.4bn | £1.2bn | £0.6bn |
| Benefit overpaid through fraud and error£3.4bnOf which benefit fraud£1.2bnBenefit underpaid (official error)£0.6bn | | | | |
| 2014-15Details | £32.8bn | £3.0bn | £1.3bn | £0.6bn |
| Benefit overpaid through fraud and error£3.0bnOf which benefit fraud£1.3bnBenefit underpaid (official error)£0.6bn | | | | |
| 2015-16Details | £33.0bn | £3.3bn | £1.9bn | £0.6bn |
| Benefit overpaid through fraud and error£3.3bnOf which benefit fraud£1.9bnBenefit underpaid (official error)£0.6bn | | | | |
| 2016-17Details | £33.1bn | £3.6bn | £2.0bn | £0.5bn |
| Benefit overpaid through fraud and error£3.6bnOf which benefit fraud£2.0bnBenefit underpaid (official error)£0.5bn | | | | |
| 2017-18Details | £32.8bn | £3.8bn | £2.2bn | £0.6bn |
| Benefit overpaid through fraud and error£3.8bnOf which benefit fraud£2.2bnBenefit underpaid (official error)£0.6bn | | | | |
| 2018-19Details | £34.4bn | £3.9bn | £2.1bn | £0.7bn |
| Benefit overpaid through fraud and error£3.9bnOf which benefit fraud£2.1bnBenefit underpaid (official error)£0.7bn | | | | |
| 2019-20Details | £40.1bn | £4.5bn | £2.7bn | £0.7bn |
| Benefit overpaid through fraud and error£4.5bnOf which benefit fraud£2.7bnBenefit underpaid (official error)£0.7bn | | | | |
| 2020-21Details | £36.9bn | £8.2bn | £6.2bn | £0.9bn |
| Benefit overpaid through fraud and error£8.2bnOf which benefit fraud£6.2bnBenefit underpaid (official error)£0.9bn | | | | |
| 2021-22Details | £44.6bn | £8.7bn | £6.5bn | £1.1bn |
| Benefit overpaid through fraud and error£8.7bnOf which benefit fraud£6.5bnBenefit underpaid (official error)£1.1bn | | | | |
| 2022-23Details | £55.3bn | £8.3bn | £6.3bn | £1.2bn |
| Benefit overpaid through fraud and error£8.3bnOf which benefit fraud£6.3bnBenefit underpaid (official error)£1.2bn | | | | |
| 2023-24Details | £52.8bn | £9.7bn | £7.3bn | £1.1bn |
| Benefit overpaid through fraud and error£9.7bnOf which benefit fraud£7.3bnBenefit underpaid (official error)£1.1bn | | | | |
| 2024-25Details | £59.2bn | £9.4bn | £6.4bn | £1.2bn |
| Benefit overpaid through fraud and error£9.4bnOf which benefit fraud£6.4bnBenefit underpaid (official error)£1.2bn | | | | |
| 2025-26Details | — | £9.9bn | £6.8bn | £1.2bn |
| Benefit overpaid through fraud and error£9.9bnOf which benefit fraud£6.8bnBenefit underpaid (official error)£1.2bn | | | | |






Figure as of 23 June 2026. Source:
[HM Revenue and Customs](https://assets.publishing.service.gov.uk/media/6a314f53141f0690ad5fa41e/Measuring_tax_gap_online_tables_2026.xlsx), [Department for Work and Pensions](https://assets.publishing.service.gov.uk/media/6a0301e44fb0713aa63ea797/financial-year-ending-2026-estimates.ods).




More on benefits: [benefit fraud, error and wrongly refused claims](/benefit-fraud-error-and-appeals/).





## What each side says




### Is the tax gap understated?





### Those who say it is, or that it is rising



- It's a massive worry that the tax gap for the wealthiest has increased over the past year, at the same time the Chancellor promised to crack down on it. Caitlin Boswell, Deputy Director, Tax Justice UK ([23 June 2026](https://taxjustice.uk/blog/press-release-tax-gap-2026/))
- Internally, HMRC has identified a much larger amount of tax at risk from all forms of offshore non-compliance, but it does not publish this figure. Mike Lewis, TaxWatch ([19 June 2025](https://www.taxwatchuk.org/the-gap-in-the-tax-gap/))





### Those who point to how it is measured, what enforcement brings in, or how it compares



- the size of the large-business tax gap, relative to revenue, is low. National Audit Office ([27 February 2026](https://www.nao.org.uk/reports/taxing-large-businesses/))
- is subject to uncertainties such as the speed at which new staff can be recruited and trained, the type of compliance activity they will target in future, and the estimated average tax yield that new staff members will deliver over time. Office for Budget Responsibility ([2 October 2025](https://articles.obr.uk/estimating-the-yield-from-tax-compliance-policies/index.html))
- Back in 2005 we lost £11 in every £1,000 to avoidance. Now it is just £1. Ellen Milner, Director of Public Policy, Chartered Institute of Taxation ([18 June 2025](https://www.tax.org.uk/tax-gap-2025))
- their record, collecting more than 95 per cent of tax due, compares well internationally. John Barnett, Chartered Institute of Taxation ([21 June 2024](https://www.tax.org.uk/tax-gap-at-record-high-and-record-low))
- Today’s estimates reflect the changing world in which HMRC operates, where it is becoming more difficult to tackle non-compliance through traditional approaches alone. JP Marks, Chief Executive, HM Revenue and Customs ([23 June 2026](https://realbusiness.co.uk/small-business-accounts-largest-share-uks-59-2-billion-tax-gap)) As quoted by Real Business.






Views are attributed to the people and organisations named, with the date and a link to where they said it. This site takes no side.





### Where is the line between avoidance and legitimate tax planning?





### Those who want tougher rules on promoters



- Dan Neidle, Tax Policy Associates ([20 October 2025](https://taxpolicy.org.uk/2025/10/20/criminalising-tax-avoidance/)): Supports universal stop notices and HMRC-imposed penalties for failing to disclose schemes, after concluding that making such failures a crime would not work.
- The government are right to be taking a robust approach to those who continue to devise, promote or sell mass-marketed tax avoidance schemes. Ellen Milner, Chartered Institute of Taxation ([3 October 2025](https://www.tax.org.uk/government-plans-for-tackling-promoters-of-tax-avoidance-miss-their-target))





### Those who warn the rules could catch ordinary advice



- appears to encompass not just dishonest behaviour but also honest advice on legitimate legal interpretation issues. Ellen Milner, Chartered Institute of Taxation ([3 October 2025](https://www.tax.org.uk/government-plans-for-tackling-promoters-of-tax-avoidance-miss-their-target))






Views are attributed to the people and organisations named, with the date and a link to where they said it. This site takes no side.






## What these figures do and don't show



- The tax gap is modelled. Some parts, such as offshore evasion and the hidden economy, are especially hard to measure, and HMRC revises past years in each edition.
- The latest two years are partly projections.
- Avoidance and evasion are different: avoidance uses the law in ways Parliament did not intend; evasion is illegal. Most of the gap is neither.
- Official costings of measures to close the gap are forecasts made when they were announced; the OBR calls the yield from extra compliance staff uncertain.
- The comparison with benefit fraud and error puts two different estimates on one scale; neither is a count of proven cases.






## Sources for this page





| Source | Publisher | Figures as of | Updated | Licence |
| --- | --- | --- | --- | --- |
| [Measuring tax gaps, 2026 edition: tables](https://assets.publishing.service.gov.uk/media/6a314f53141f0690ad5fa41e/Measuring_tax_gap_online_tables_2026.xlsx) | HM Revenue and Customs | 23 June 2026 | annual | [Open Government Licence v3.0](https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/) |
| [HMRC annual report and accounts 2025 to 2026](https://www.gov.uk/government/publications/hmrc-annual-report-and-accounts-2025-to-2026) | HM Revenue and Customs | 9 July 2026 | annual | [Open Government Licence v3.0](https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/) |
| [Named tax avoidance schemes, promoters, enablers and suppliers (counted by date and legislation only)](https://www.gov.uk/government/publications/named-tax-avoidance-schemes-promoters-enablers-and-suppliers) | HM Revenue and Customs | 24 September 2026 | annual | [Open Government Licence v3.0](https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/) |
| [Fraud and error in the benefit system, FYE 2026 estimates](https://assets.publishing.service.gov.uk/media/6a0301e44fb0713aa63ea797/financial-year-ending-2026-estimates.ods) | Department for Work and Pensions | 14 May 2026 | annual | [Open Government Licence v3.0](https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/) |





Each source's figures are used under the licence shown. Our own words, analysis, charts and derived calculations
are ours, under [CC BY 4.0](https://creativecommons.org/licenses/by/4.0/).

## Related pages

- [Next in this section: For every £100 of tax](https://whereyourmoneygoes.co.uk/for-every-100-pounds-of-tax/)
- [How much are HMRC penalties and interest, and how much do they raise?](https://whereyourmoneygoes.co.uk/hmrc-penalties-and-interest/)
- [What taxes do I pay in the UK, and how much does each raise?](https://whereyourmoneygoes.co.uk/all-uk-taxes/)
- [How much public money is lost to fraud, error and write-offs?](https://whereyourmoneygoes.co.uk/fraud-error-and-write-offs/)
- [How much income tax do I pay?](https://whereyourmoneygoes.co.uk/income-tax/)

## More from this publisher

- [UK tax calculators](https://howlongisit.co.uk)

Published by [Tekstak Ltd](https://tek-stak.co.uk). Our words, analysis, charts and derived calculations: CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/), credit [Tekstak Ltd](https://tek-stak.co.uk). The figures belong to the publishers listed under Sources and are used under their licences. Figures last updated 29 September 2026.