HMRC statistics relating to VAT gap estimates.
- The VAT Gap is a measure of the difference between the expected amount of VAT that HMRC should receive and the actual amount they receive.
- It is calculated by comparing the net VAT total theoretical liability with the actual receipts.
- The preliminary estimate for the VAT Gap in tax year 2022 to 2023 is £8.8 billion, which is 5.3% of the net VAT total theoretical liability.
- This estimate shows a slight reduction compared to the previous year’s estimate.
- The calculation takes into account adjustments for the Energy Bills Support scheme and deferred VAT payments due to Covid-19. HMRC publishes three estimates of the VAT Gap each year, with the preliminary estimate being published in the autumn.
- The second estimate will be published in the spring.
Source gov.uk
