Recommendation 20

HMRC was unable to say what impact the additional revenues it expects to bring in would have on the tax gap. It said it is not practical to set a target for the tax gap as it is measured more than a year after the end of the tax year and is then subject to revisions as more data become available. Instead, HMRC said its operational target was an annual target for compliance yield which, if delivered, should in turn reduce the tax gap, once that is also measured. 60 HMRC said this operational target for compliance yield, set at £45.5 billion for 2024–25, is stretching but that it hopes to achieve it.61