In this section: Public finances

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.

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.

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.

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

The tax gap, £ billion and % of tax due (£ billion, cash)
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.

The tax gap by tax, 2024-25
Tax	£ billion	% of that tax due
VAT Details for VAT	£12.1bn	6.6%
% of that tax due 6.6%
excise duty Details for excise duty	£2.9bn	5.5%
% of that tax due 5.5%
Income Tax, NICs, Capital Gains Tax Details for Income Tax, NICs, Capital Gains Tax	£20.9bn	4.0%
% of that tax due 4.0%
Corporation Tax Details for Corporation Tax	£21.0bn	18.1%
% of that tax due 18.1%
other taxes Details for other taxes	£2.3bn	4.6%
% of that tax due 4.6%

Source: HM Revenue and Customs, Measuring tax gaps, 2026 edition: tables, 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

The tax gap by behaviour, £ billion (£ billion, cash)
Year	Failure to take reasonable care	Error	Evasion	Legal interpretation	Non-payment
2019-20 Details for 2019-20	£11.1bn	£5.8bn	£4.2bn	£4.3bn	£4.6bn
Error £5.8bn Evasion £4.2bn Legal interpretation £4.3bn Non-payment £4.6bn
2020-21 Details for 2020-21	£11.2bn	£5.3bn	£4.2bn	£3.8bn	£4.9bn
Error £5.3bn Evasion £4.2bn Legal interpretation £3.8bn Non-payment £4.9bn
2021-22 Details for 2021-22	£15.1bn	£7.0bn	£5.5bn	£4.1bn	£5.3bn
Error £7.0bn Evasion £5.5bn Legal interpretation £4.1bn Non-payment £5.3bn
2022-23 Details for 2022-23	£17.9bn	£8.4bn	£6.3bn	£6.2bn	£6.7bn
Error £8.4bn Evasion £6.3bn Legal interpretation £6.2bn Non-payment £6.7bn
2023-24 Details for 2023-24	£18.2bn	£8.1bn	£6.3bn	£6.2bn	£5.6bn
Error £8.1bn Evasion £6.3bn Legal interpretation £6.2bn Non-payment £5.6bn
2024-25 Details for 2024-25	£20.8bn	£9.3bn	£7.1bn	£6.9bn	£5.7bn
Error £9.3bn Evasion £7.1bn Legal interpretation £6.9bn Non-payment £5.7bn

Figure as of 23 June 2026. Source: HM Revenue and Customs.

Which parts are growing: by behaviour, 2019-20 to 2024-25
Part of the gap	From	To	Change	Share of the gap
Failure to take reasonable care Details for Failure to take reasonable care	£11.1bn (2019-20)	£20.8bn (2024-25)	+£9.7bn	+7.5 points
To £20.8bn (2024-25) Change +£9.7bn Share of the gap +7.5 points
Error Details for Error	£5.8bn (2019-20)	£9.3bn (2024-25)	+£3.5bn	+1.2 points
To £9.3bn (2024-25) Change +£3.5bn Share of the gap +1.2 points
Evasion Details for Evasion	£4.2bn (2019-20)	£7.1bn (2024-25)	+£2.9bn	+1.5 points
To £7.1bn (2024-25) Change +£2.9bn Share of the gap +1.5 points
Legal interpretation Details for Legal interpretation	£4.3bn (2019-20)	£6.9bn (2024-25)	+£2.6bn	+0.9 points
To £6.9bn (2024-25) Change +£2.6bn Share of the gap +0.9 points
Non-payment Details for Non-payment	£4.6bn (2019-20)	£5.7bn (2024-25)	+£1.1bn	−1.8 points
To £5.7bn (2024-25) Change +£1.1bn Share of the gap −1.8 points
Hidden economy Details for Hidden economy	£3.3bn (2019-20)	£3.6bn (2024-25)	+£0.3bn	−2.1 points
To £3.6bn (2024-25) Change +£0.3bn Share of the gap −2.1 points
Avoidance Details for Avoidance	£0.9bn (2019-20)	£0.8bn (2024-25)	−£0.1bn	−0.9 points
To £0.8bn (2024-25) Change −£0.1bn Share of the gap −0.9 points
Criminal attacks Details for Criminal attacks	£5.9bn (2019-20)	£5.0bn (2024-25)	−£0.9bn	−6.3 points
To £5.0bn (2024-25) Change −£0.9bn Share of the gap −6.3 points

Who owes it

The tax gap by who owes it, £ billion

The numbers behind this chart

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

Figure as of 23 June 2026. Source: HM Revenue and Customs.

Which parts are growing: by taxpayer group, 2019-20 to 2024-25
Part of the gap	From	To	Change	Share of the gap
Small businesses Details for Small businesses	£21.3bn (2019-20)	£36.7bn (2024-25)	+£15.4bn	+8.9 points
To £36.7bn (2024-25) Change +£15.4bn Share of the gap +8.9 points
Wealthy Details for Wealthy	£1.5bn (2019-20)	£3.6bn (2024-25)	+£2.1bn	+2.3 points
To £3.6bn (2024-25) Change +£2.1bn Share of the gap +2.3 points
Large businesses Details for Large businesses	£5.1bn (2019-20)	£7.1bn (2024-25)	+£2.0bn	−0.7 points
To £7.1bn (2024-25) Change +£2.0bn Share of the gap −0.7 points
Individuals Details for Individuals	£2.1bn (2019-20)	£2.7bn (2024-25)	+£0.6bn	−0.7 points
To £2.7bn (2024-25) Change +£0.6bn Share of the gap −0.7 points
Mid-sized businesses Details for Mid-sized businesses	£4.2bn (2019-20)	£4.1bn (2024-25)	−£0.1bn	−3.5 points
To £4.1bn (2024-25) Change −£0.1bn Share of the gap −3.5 points
Criminals Details for Criminals	£5.9bn (2019-20)	£5.0bn (2024-25)	−£0.9bn	−6.3 points
To £5.0bn (2024-25) Change −£0.9bn Share of the gap −6.3 points

Which parts are growing: by tax, 2019-20 to 2024-25
Part of the gap	From	To	Change	Share of the gap
Corporation Tax Details for Corporation Tax	£10.3bn (2019-20)	£21.0bn (2024-25)	+£10.7bn	+9.8 points
To £21.0bn (2024-25) Change +£10.7bn Share of the gap +9.8 points
Income Tax, NICs, Capital Gains Tax Details for Income Tax, NICs, Capital Gains Tax	£12.4bn (2019-20)	£20.9bn (2024-25)	+£8.5bn	+4.4 points
To £20.9bn (2024-25) Change +£8.5bn Share of the gap +4.4 points
other taxes Details for other taxes	£2.0bn (2019-20)	£2.3bn (2024-25)	+£0.3bn	−1.1 points
To £2.3bn (2024-25) Change +£0.3bn Share of the gap −1.1 points
VAT Details for VAT	£12.2bn (2019-20)	£12.1bn (2024-25)	−£0.1bn	−10.0 points
To £12.1bn (2024-25) Change −£0.1bn Share of the gap −10.0 points
excise duty Details for excise duty	£3.1bn (2019-20)	£2.9bn (2024-25)	−£0.2bn	−2.8 points
To £2.9bn (2024-25) Change −£0.2bn Share 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

Avoidance in the tax gap, £ billion (£ billion, cash)
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.

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

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

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

Measures to close the tax gap and what each was costed to raise (£ million a year, official scorecards)
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) Details for Measures to close the tax gap (Autumn Budget 2024 package: umbrella companies, compliance and debt staff, systems, and closing specific arrangements)	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
Announced Autumn Budget 2024 Year by year 2024-25: £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 Details for Of which: 5,000 more HMRC compliance staff	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
Announced Autumn Budget 2024 Year by year 2024-25: £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 Details for Of which: ending contrived company car ownership arrangements	Autumn Budget 2024	£175m (2029-30)	2024-25: £0m; 2025-26: £0m; 2026-27: £275m; 2027-28: £220m; 2028-29: £195m; 2029-30: £175m
Announced Autumn Budget 2024 Year by year 2024-25: £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) Details for Of which: umbrella company non-compliance (PAYE moved to agencies)	Autumn Budget 2024	£500m (2029-30)	2024-25: £0m; 2025-26: £75m; 2026-27: £895m; 2027-28: £740m; 2028-29: £635m; 2029-30: £500m
Announced Autumn Budget 2024 Year by year 2024-25: £0m; 2025-26: £75m; 2026-27: £895m; 2027-28: £740m; 2028-29: £635m; 2029-30: £500m
500 more HMRC compliance staff Details for 500 more HMRC compliance staff	Spring Statement 2025	£95m (2029-30)	2024-25: £0m; 2025-26: £0m; 2026-27: £15m; 2027-28: £50m; 2028-29: £80m; 2029-30: £95m
Announced Spring Statement 2025 Year by year 2024-25: £0m; 2025-26: £0m; 2026-27: £15m; 2027-28: £50m; 2028-29: £80m; 2029-30: £95m
Further measures to close the tax gap Details for Further measures to close the tax gap	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
Announced Budget 2025 Year by year 2025-26: £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 Details for Of which: tighter share exchange and reconstruction rules	Budget 2025	£20m (2030-31)	2025-26: £0m; 2026-27: £20m; 2027-28: £20m; 2028-29: £20m; 2029-30: £20m; 2030-31: £20m
Announced Budget 2025 Year by year 2025-26: £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 Details for Of which: stronger powers over tax advisers who do not comply	Budget 2025	£55m (2030-31)	2025-26: £0m; 2026-27: £15m; 2027-28: £50m; 2028-29: £55m; 2029-30: £55m; 2030-31: £55m
Announced Budget 2025 Year by year 2025-26: £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 Details for Of which: third-party data on interest and card sales	Budget 2025	£465m (2030-31)	2025-26: £0m; 2026-27: £0m; 2027-28: £0m; 2028-29: £30m; 2029-30: £350m; 2030-31: £465m
Announced Budget 2025 Year by year 2025-26: £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) Details for Loan Charge: government response to the independent review (a cost)	Budget 2025	−£95m (2030-31)	2025-26: −£25m; 2026-27: −£95m; 2027-28: −£30m; 2028-29: £35m; 2029-30: −£155m; 2030-31: −£95m
Announced Budget 2025 Year by year 2025-26: −£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

HMRC’s enforcement and collection, 2025-26
Measure	Figure	Year	Note
Compliance yield: tax HMRC says its compliance work brought in or protected Details for Compliance yield: tax HMRC says its compliance work brought in or protected	£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.
Year 2025-26 Note £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 tax Details for HMRC's cost of collecting each £1 of tax	0.51p	2025-26	Unchanged since 2019-20 on the current method.
Year 2025-26 Note Unchanged since 2019-20 on the current method.
Total tax revenue collected by HMRC Details for Total tax revenue collected by HMRC	£966.4bn	2025-26
Year 2025-26
Criminal prosecutions by HMRC's Fraud Investigation Service Details for Criminal prosecutions by HMRC's Fraud Investigation Service	300	2025-26	260 convictions, a court success rate of 87%.
Year 2025-26 Note 260 convictions, a court success rate of 87%.
Positive charging decisions (cases where a prosecutor decided to charge) Details for Positive charging decisions (cases where a prosecutor decided to charge)	468	2025-26	557 in 2024-25.
Year 2025-26 Note 557 in 2024-25.
Tax repaid by HMRC Details for Tax repaid by HMRC	£159.1bn	2025-26	VAT repayments were £115.7 billion. Income tax repayments are not published separately.
Year 2025-26 Note VAT 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 peak Details for PAYE taxpayers who paid too much because of an error in State Pension figures, at the peak	1,400,000	2024-25	An average of £1.76 to £2.30 a year for a basic-rate taxpayer.
Year 2024-25 Note An 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

Taxing large businesses

By
National Audit Office
Date
27 Feb 2026

Details for Taxing large businesses

What it found
Found 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

By
National Audit Office
Date
16 May 2025

Details for Collecting the right tax from wealthy individuals

What it found
Compliance 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

By
National Audit Office
Date
10 Feb 2025

Details for The administrative cost of the tax system

What it found
Looked at what running the tax system costs government and the businesses and people who pay tax.
Collecting the right tax from wealthy individuals

By
Public Accounts Committee
Date
16 Jul 2025

Details for Collecting the right tax from wealthy individuals

What it found
Said 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

By
Public Accounts Committee
Date
12 Feb 2025

Details for Tax evasion in the retail sector

What it found
Reported 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

By
Public Accounts Committee
Date
10 Jul 2026

Details for Large business tax compliance

What it found
Found 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

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

Figure as of 23 June 2026. Source: HM Revenue and Customs, Department for Work and Pensions.

More on benefits: benefit fraud, error and wrongly refused claims.

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)
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)

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)
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)
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)
their record, collecting more than 95 per cent of tax due, compares well internationally. John Barnett, Chartered Institute of Taxation (21 June 2024)
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) 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): 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)

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)

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	HM Revenue and Customs	23 June 2026	annual	Open Government Licence v3.0
HMRC annual report and accounts 2025 to 2026	HM Revenue and Customs	9 July 2026	annual	Open Government Licence v3.0
Named tax avoidance schemes, promoters, enablers and suppliers (counted by date and legislation only)	HM Revenue and Customs	24 September 2026	annual	Open Government Licence v3.0
Fraud and error in the benefit system, FYE 2026 estimates	Department for Work and Pensions	14 May 2026	annual	Open Government Licence v3.0

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.

How big it is, over the longest run available

Why it isn’t paid

Who owes it

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

Evasion, the hidden economy and enforcement

What the auditors and MPs found

The other side: tax repaid and overpaid

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

What each side says

Is the tax gap understated?

Those who say it is, or that it is rising

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

Where is the line between avoidance and legitimate tax planning?

Those who want tougher rules on promoters

Those who warn the rules could catch ordinary advice

What these figures do and don't show

Sources for this page

Share this page

Analytics cookies