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Small businesses in Great Britain have not managed to pay 40 percent of the corporate tax they owed in 2023-24, which led to claims that HM Revenue & Customs “lost control of the sector.
Although the total tax gap between the amounts due and collected in the year was reduced, the HMRC figures published on Thursday rose from HMRC from 12.3 billion GBP to 14.7 billion GBP to 14.7 billion GBP.
Of the £ 36.7 billion Hmrc It was estimated that small companies were owed in the course of the year, only 22 billion GBP were collected – and 40.1 percent were missing.
Small company-defined as a company with a turnover of less than 10 million GBP and less than 20 attendees in 2019 to 20 fewer than half of the tax gap in Great Britain. This amount has now risen to 60 percent for 2023-24.
“The HMRC has done impressive work in the past 20 years to reduce the tax gap in the large company,” said Dan Neidle, founder of the Tax Policy Associates Think-Tank. “But they seem to have lost control of the tax gap with small companies.”
The Federation of the small companies indicated that many companies found the tax system to be too complicated and that HMRC no longer reacted if you have any questions.
“The HMRC has to focus on answering its phones, shortening the response times and helping people to navigate through the tax system,” said Tina McKenzie, head of politics.
“This would improve tax insurance and reduce the productivity that has not been reacted by a tax authority that has not been responded to, with which many of the 99 percent of companies in Great Britain with which” small “are currently classified.”
The total amount of taxes due, which was not levied a year, was 46.8 billion GBP, a tax gap of 5.3 percent declines of a revised value of 5.6 percent in 2022-23. In 2023-24, HMRC received £ 829.2 billion GBP of taxes in 2023-24.
While small companies were the largest group responsible for the tax gap, HMRC estimated the wealthy people “the lowest proportion of tax gaps” in 2023-24 to 5 percent.
The statement of some has recently been criticized by some, especially as a national examination office warned The HMRC could underestimate the tax gap from wealthy people.
Caitlin Boswell, head of the representation of interests and politics at Tax Justice UK, a printing group, said: “Evidence of the level of the tax compliance of the Super-Rich is much higher than estimated, whereby the eyes of hoarding Hortenhorms off the coast and outside the HMRC are kept from sight.”
She added: “The real story here is that the Tax Authority of the UK does not have the resources or that it needs to manage the tax gap, which is probably far greater than what is published.”
Finance Minister James Murray said: “Every pound of tax -bound pound is more likely to put on honest taxpayers and rob our public services of important funds.”
He added that the government had set plans to collect additional 7.5 billion GBP.
During the expenditure check, the government gave 1.7 billion GBP to the HMRC over the next four years to finance a further 5,500 compliance and 2,400 debt management staff.
