NAO report finds £34 billion of tax unpaid in 2014

The National Audit Office (NAO) has discovered that the amount of tax going unpaid has risen to £34 billion.

The difference between how much HM Revenue & Customs (HMRC) is owed and what it collects has risen by £1 billion over the past year, according to the NAO report. The recent findings show that more than 40 % of last year’s shortfall was a result of unpaid income tax, while uncollected VAT accounted for 36 %. Small and medium-sized businesses were singled out in the report as the worst offenders, failing to pay £15.1 billion of owed tax. The NAO stated that £7.2 billion owed was lost to a combination of tax avoidance and evasion, and a further £5.9 billion disappeared in the hidden economy through cash-in-hand payments. Meanwhile, £7.1 billion was lost to errors and carelessness. The report also revealed how HMRC is using information from credit reference agencies to catch out suspected fraudsters – something which may be rather surprising to many. The message, as always, is clear: make sure you pay your fair share. We are here to help. Call us today. T: 020 7376 9333 E: info@figurit.com