UK Value-Added Tax Gap Widens by £500 Million for 2024-25

The UK’s uncollected value-added tax is £500 million ($663 million) higher than previously estimated for the 2024-25 tax year, according to official data released Tuesday.

The VAT gap—the difference between expected tax and actual tax collected—has been revised to 6.5%, up from the previous estimate of 6.2%, His Majesty’s Revenue and Customs said in a statement.

HMRC subsequently revised its value estimate of the VAT gap to £11.9 billion for 2024-25, up from the £11.4 billion estimate published in November 2025.

• However, forecasts published by the Office for Budget Responsibility alongside UK Chancellor Rachel Reeves’ Spring Statement ...