UK tax compliance and HMRC Campaigns

The tax gap is the difference between the estimate of the tax that should be paid and the amount actually paid.

A 2014 report commissioned by the Public and Commercial Services Union estimated that the UK‟s tax gap was £122 billion a year and growing. This was a big increase on the 2010 estimate of £95 billion. 

In an attempt to reduce this gap, HM Revenue & Customs ("HMRC") runs campaigns that are designed to:

• help people to bring their tax affairs up to date
• help them keep them that way, and
• help stop them getting it wrong in the first place.

These campaigns do the following;

• provide opportunities that make it easier to be compliant – including offering an incentive to self-correct
• bring together a basket of activities to encourage voluntary compliance in the target population
• look for opportunities to inform customers who are entering the targeted risk area for the first time
• use what is learned to help HMRC improve processes to deal more efficiently with customers in the future.

These campaigns offer people a chance to get their tax affairs in order on the best possible terms. They provide tools and information to help people do that; to help people keep their affairs in order; and to help stop people getting it wrong in the first place.

Where people choose not to take the chance to set the record straight, HMRC uses the information, gathered before and during the campaign, to conduct follow-up work. This includes investigations and prosecutions.

The current campaigns relate to:

• Credit and debit card sales,
• Second Income,and 
• Let Property.

Anybody wanting to make a tax disclosure voluntarily about any area of UK tax can still make a disclosure by using the Campaign Voluntary Disclosure Helpline on 0300 123 1078 - Monday to Friday, 8 am to 6:30 pm.