In 2022/23 the tax gap as a percentage of theoretical tax liabilities in the United Kingdom was 4.8 percent, compared with 5.2 percent in the previous financial year. During this provided time period, the tax gap in the UK was highest in 2005/06, when it was 7.4 percent, and lowest in the most recent year.

In 2022/23, the value of the tax gap in the United Kingdom was estimated to be around 39.8 billion British pounds, compared with 38.1 billion pounds in the previous year.

Data collected by HMRC KAI Enforcement and Compliance as part of tax gap estimates. Updated: varied.

Data on the cigarette tax gap in the United Kingdom from fiscal year 2011/12 to 2018/19 in million British pounds shows that the amount of tax revenue lost to the illicit cigarette market has fluctuated from between 31 billion and 47 billion British pounds, and amounted to 30 billion in the most recent period.

Data on the diesel tax gap in Great Britain from fiscal year 2011/12 to 2018/19 shows that in the most recent period, the illicit diesel market cost the British government an estimated 140 million British pounds in lost tax revenue.

Data on the spirits tax gap in the United Kingdom from fiscal year 2011/12 to 2018/19 shows that the illicit market in spirits is estimated to have cost the United Kingdom government a total of over 20 million British pounds in tax revenue losses over this period, with a high of 600 million in the fiscal year 2014/15.

Data on the beer tax gap in the United Kingdom from fiscal year 2011/12 to 2018/19, in million British pounds shows that over this period, the peak was in the fiscal year 2014/15, at 1 billion British pounds.

Data on the hand rolling tobacco tax gap in the United Kingdom from fiscal year 2011/12 to 2018/19 in billion British pounds shows that throughout this period the amount of annual tax revenue lost to this illicit market has fluctuated from 3 billion to 4.7 billion British pounds.

In 2022/23 the value of tax receipts for the United Kingdom amounted to approximately 827.74 billion British pounds. This represented a net increase of over 512.1 billion pounds when compared with 2000/01. Since that year, the total value of tax receipts showed year-on-year increases in most years, except for 2008/09, 2009/10, and 2020/21 when the value declined. Tax receipts form the bulk of UK government income, based on various direct and indirect taxes. Tax revenue sources Of the revenue generation by taxation in 2023/24, over 273.27 billion of this came from Income Tax receipts, which was the main source of direct tax income for the government. After income tax, the next most substantial direct tax were contributions from National Insurance, which amounted to just over 177.74 billion pounds of tax revenue in 2023/24. The UK's main goods and services tax; Value-added Tax (VAT) amounted to 169 billion pounds, while Corporation Tax receipts added up to around 88 billion pounds. Although other smaller direct and indirect taxes produce notable income, these four sources were by far the main sources in the 2023/24 financial year. UK government finances While taxes and other sources of income raised more than one trillion pounds in 2023/24, the UK government expenditure was around 1.1 trillion pounds. This gap between revenue and expenditure was financed via government borrowing, which amounted to 107 billion pounds in 2023/24. As the UK government has been spending more than it earns for several years, this has resulted in significant government debt building up, expected to be the equivalent of 103.1 percent of GDP in 2023/24.