This week’s miscellaneous updates – 29 June 2026

In a detailed miscellaneous update this week which you can read more about below, HMRC has published the 2026 edition of measuring tax gaps.

In addition to the above, readers should also note the following:

• HMRC is urging summer jobseekers to use the HMRC app to demystify tax and money matters, 
• The Institute for Fiscal Studies has published ‘The Scottish Government faces a fiscal reckoning – with spending cuts or tax rises on the way’ ,
• For anyone dealing with an estate affected by the recent NS&I tracing and payout errors, the Government has confirmed there will be a full inheritance tax exemption applied to the returned holdings and compensation payments. Executors will also not be liable for income tax on any accrued interest,
• In a recent article, the International Monetary Fund has welcome the UK's current fiscal strategy, noting the Government's balanced approach to deficit reduction and growth-friendly spending reinforces credibility. It emphasised that staying the course with planned medium-term fiscal adjustments is essential to stabilise the UK’s public debt,
• Tax Policy Associates has published ‘Why do we still have stamp duty?’,
• The latest schedule of HMRC Talking Points live and recorded webinars for tax agents are available for booking. Spaces are limited, so take a look now and save your place, and finally,
• Check HMRC’s online services availability page for details of planned downtime and the online services affected.

Measuring tax gaps 2026 edition

HMRC has published the 2026 edition of measuring tax gaps according to which the tax gap in 2024/25 was estimated to be 6.4 percent of total theoretical tax owed, HMRC’s best estimate at the time of publication which is subject to revision if more data becomes available. In absolute terms this is £59.2 billion, which compares with £52.8 billion in 2023/24 (revised up from the original figure of £46.8 billion). According to this annual publication the largest component in 2026 continues to be from small businesses.

The tax gap is the difference between the amount of tax that should, in theory, be paid to HMRC, and the amount that is actually paid. The percentage tax gap measures the tax gap as a proportion of theoretical liabilities and examines the movement in this as a measure of compliance over time as it takes into account the effects of inflation, economic growth and changes to tax rates.

According to the 2026 publication, the tax gap fell from 7.5 percent in 2005/06 (the first year HMRC began publishing this) to 5.2 percent in 2017/18. However, since then it has been on the increase with the 2023/24 tax gap having now been revised to 6.0 percent from 5.3 percent.