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Conclusion
Fourth Report - The Department for Work…
Acknowledged
We also asked HMRC if it is also seeing an increase to commit fraud among taxpayers as a whole. HMRC told us it does not forecast a propensity to fraud but that the tax gap, which might be considered an equivalent figure, has been holding steady.20 In written evidence submitted …
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We also asked HMRC if it is also seeing an increase to commit fraud among taxpayers as a whole. HMRC told us it does not forecast a propensity to fraud but that the tax gap, which might be considered an equivalent figure, has been holding steady.20 In written evidence submitted after our session HMRC clarified that the tax gap has fallen over time from 7.5% in 2005–06 to 4.8% in 2021–22, the same level as the preceding year. It also stated that HMRC does not make a separate estimate of the amount of the tax gap due to fraud, but set out that the tax gap due to ‘criminal attacks’ fell from 15% in 2020–21 to 11% in 2021–22.21
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Government response AI summary
The government agrees with the Committee’s recommendation and states it has presented detailed evidence to the Office for Budget Responsibility (OBR), who have incorporated this within the overall forecast for fraud and error prevalence in the welfare system.
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HM Treasury