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Tax fraud at highest level since crisis as VAT gap hits £3.3bn

by Daniel Grote on Jan 07, 2013 at 07:51

Tax fraud at highest level since crisis as VAT gap hits £3.3bn

Tax fraud has reached its highest level since the start of the financial crisis, with an estimated £3.3 billion in VAT revenues lost to the government each year, according to accountants BDO Stoy Hayward.

BDO's FraudTrack report said VAT fraud had grown due to a lack of resources at HM Revenue & Customs (HMRC), The Telegraph has reported.

It estimated that around half of the fraud was due to professional fraudsters, with the rest down to non-compliance and evasion by legitimate businesses.

HMRC last week published the details of the biggest tax frauds of 2012. The perpetrators have received a total of 155 years and 10 months in jail.

1 comment so far. Why not have your say?

alan from perth

Jan 07, 2013 at 10:03

well is it any wonder when the true tax rate for people is 32%,52% and higher

My father was pursued by HMRC for £33 for a year as a self employed plumber (which he didnt even owe)

Lack of staff means that the easy target will always be the one to go for and then you can always claim that you dont speak English and the business isnt yours

Get a decent tax system in place, fair tax rate and proper qualified staff

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