MPs warn £5.5bn tax evasion cost could be 'vastly underestimated'

The PAC this morning (12 February) called for a clear strategy to tackle tax evasion and for increased public body powers to take on fraud. In a report released today, the PAC found that "loopholes" in the current system have made it too easy for fraudulent behaviour to go unchecked. HMRC has estimated that tax evasion cost £5.5bn in lost revenue in 2022-23, with 81% of this attributable to small businesses. However, 2021 legislation that made online marketplaces liable for VAT for overseas sellers drove a £1.5bn in additional taxes last year, five times the amount HMRC had predicted. Th...