In 2023/24 the tax gap as a percentage of theoretical tax liabilities in the United Kingdom was 5.3 percent, compared with 5.6 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 2023/24, the value of the tax gap in the United Kingdom was estimated to be around 46.8 billion British pounds, compared with 46.4 billion pounds in the previous year.

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

Statistics relating to estimates of tax gaps - the difference between tax collected and that, which in HMRC's view, should be collected. The VAT gap estimate for 2012-13 relies on National Statistics produced by Office for National Statistics and also on the publication of revised forecasts for the UK economy by the Office for Budget Responsibility. Therefore, the second VAT gap estimate for 2012-13 will be published soon after Budget on 19th March 2014.

Source agency: HM Revenue and Customs

Designation: Official Statistics not designated as National Statistics

Language: English

Alternative title: Measuring Tax Gaps

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.

In 2024/25 the value of tax receipts for the United Kingdom amounted to approximately 840 billion British pounds. Tax receipts form the bulk of UK government income, based on various direct and indirect taxes. Although tax income has gradually increased throughout most of this period, there is a noticeable dip in 2020 due to the COVID-19 pandemic. Tax revenue sources Of the revenue generated by taxation in 2024/25, over 301 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 172.5 billion pounds of tax revenue. The UK's main goods and services tax; Value-added Tax (VAT) amounted to 170.6 billion pounds, while Corporation Tax receipts raised 91.6 billion pounds. Although other smaller direct and indirect taxes produce notable income, these four sources were by far the main sources of income in the previous financial year. UK government finances While taxes and other sources of income raised more than 1.13 trillion pounds in 2024/25, the UK government expenditure was around 1.28 trillion pounds. This gap between revenue and expenditure was financed via government borrowing, which amounted to almost 152 billion pounds. As the UK government has been spending more than it earns for several years, this has resulted in a significant government debt of 2.8 trillion pounds building up, the equivalent of just under 96 percent of GDP in 2024/25.

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.

Tobacco product (FM and RYO) taxation May 2015 to April 2018.

In 2024, the average annual full-time earnings for the top ten percent of earners in the United Kingdom was 72,150 British pounds, compared with 22,763 for the bottom ten percent of earners. As of this year, the average annual earnings for all full-time employees was 37,430 pounds, up from 34,963 pounds in the previous year. Strong wage growth continues in 2025 As of February 2025, wages in the UK were growing by approximately 5.9 percent compared with the previous year, with this falling to 5.6 percent if bonus pay is included. When adjusted for inflation, regular pay without bonuses grew by 2.1 percent, with overall pay including bonus pay rising by 1.9 percent. While UK wages have now outpaced inflation for almost two years, there was a long period between 2021 and 2023 when high inflation in the UK was rising faster than wages, one of the leading reasons behind a severe cost of living crisis at the time. UK's gender pay gap falls in 2024 For several years, the difference between average hourly earnings for men and women has been falling, with the UK's gender pay gap dropping to 13.1 percent in 2024, down from 27.5 percent in 1997. When examined by specific industry sectors, however, the discrepancy between male and female earnings can be much starker. In the financial services sector, for example, the gender pay gap was almost 30 percent, with professional, scientific and technical professions also having a relatively high gender pay gap rate of 20 percent.