UK Value-Added Tax Gap Increased Over 2 Years, Tax Office Says

The UK tax office found the value-added tax gap increased to £8.8 billion ($11.22 billion) fiscal year 2022-23, marking a steady increase over the last two years.

The VAT gap is the difference between what the tax office expects to receive in VAT revenues and what it actually collects.

The latest report from Wednesday shows the VAT gap increased from £7.6 billion in fiscal year 2021-22 and £6.3 billion in fiscal year 2020-21. Total VAT collections for the latest fiscal year 2022-23 were at £159.7 billion.

• The latest report is the second estimate of the VAT gap, and ...