{"id":25054,"date":"2023-07-13T11:52:13","date_gmt":"2023-07-13T10:52:13","guid":{"rendered":"https:\/\/smh.group\/?p=25054"},"modified":"2023-07-13T11:52:13","modified_gmt":"2023-07-13T10:52:13","slug":"tax-gap-at-all-time-low","status":"publish","type":"post","link":"https:\/\/devstagesite.co.uk\/smhgroup\/tax-gap-at-all-time-low\/","title":{"rendered":"Tax gap at all-time low"},"content":{"rendered":"<p><strong>The tax gap is the difference between the amount of tax that should, in theory, be paid to HMRC, and what is actually paid. For 2021\/22, the gap was at an all-time low of 4.8% (or \u00a335.8 billion), although in monetary terms the gap increased by some \u00a37 billion from 2020\/21.<\/strong><\/p>\n<h2><strong>Small businesses<\/strong><\/h2>\n<p>Recently published figures from HMRC show that small businesses now account for the largest share of the tax gap, at 56% of the total or just over \u00a320 billion. This percentage has grown steadily from 40% in 2017\/18. By comparison, the share for mid-sized and large businesses has fallen from 18% to 11% over the same period.<\/p>\n<p>There isn\u2019t sufficient information to understand what is happening here, but there are a couple of possibilities:<\/p>\n<ul>\n<li>Having endured the challenges of the Covid-19 pandemic and now facing an equally tough economic climate, small businesses may be under-declaring income or, more likely given most sales are now done electronically, overclaiming on expense deductions.<\/li>\n<li>At the same time, HMRC now lacks the resources to carry out extensive tax investigations.<\/li>\n<\/ul>\n<p>And, of course, having an extremely complex tax system doesn\u2019t help.<\/p>\n<p>The whole concept of the tax gap has been subject to criticism, especially as HMRC does not explain how figures are calculated.<\/p>\n<p>Our <a href=\"https:\/\/devstagesite.co.uk\/smhgroup\/chartered-accountants\/\"><span style=\"text-decoration: underline;\"><strong>Yorkshire and Derbyshire based Accounting &#038; Business Advisory<\/strong><\/span><\/a> can assist on <strong>0114 266 4432<\/strong> or <a href=\"mailto:info@smh.group\"><span style=\"text-decoration: underline;\"><strong>info@smh.group<\/strong><\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The tax gap is the difference between the amount of tax that should, in theory, be paid to HMRC, and what is actually paid. For 2021\/22, the gap was at an all-time low of 4.8% (or \u00a335.8 billion), although in monetary terms the gap increased by some \u00a37 billion from 2020\/21.<\/p>\n","protected":false},"author":4,"featured_media":25055,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[3],"tags":[69,83,77,11,1025,322],"class_list":["post-25054","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-smh-accounting-business-advisory","tag-capital-gains-tax","tag-chartered-accountants","tag-financial-planning","tag-hmrc","tag-small-businesses","tag-tax-gap"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Tax gap at all-time low - SMH Group<\/title>\n<meta name=\"description\" content=\"The tax gap is the difference between the amount of tax that should, in theory, be paid to HMRC, and what is actually paid. 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