ACCA responds to HMRC's measuring tax gaps - 2019 edition

Following the publication of HMRC’s Measuring Tax Gaps – 2019 edition, Jason Piper, head of taxation at ACCA, said:

‘Whilst the Corporation Tax gap has reduced from 12.5% to 8.1% in 2017-18 in a little more than ten years, the biggest single taxpayer group responsible for the tax gap is small businesses (£14 billion), costing society nearly twice as much as big business (£7.7 billion).

‘This doesn’t mean HMRC should devote twice as much resource to small business as big business. In reality it should probably devote even more than that to the issue. The challenges of dealing with this sector differ from that of multinationals.

‘Small businesses by definition will have smaller tax bills, which means that HMRC will need to open more enquiries and handle more pieces of correspondence per pound than for large businesses. However it is vital that HMRC remains sensitive in managing SME relationships every bit as carefully as they do multinationals.’

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About ACCA

ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants, offering business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.

ACCA supports its 219,000 members and 527,000 students (including affiliates) in 179 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. ACCA works through a network of 110 offices and centres and more than 7,571 Approved Employers worldwide, and 328 approved learning providers who provide high standards of learning and development.

Through its public interest remit, ACCA promotes appropriate regulation of accounting and conducts relevant research to ensure accountancy continues to grow in reputation and influence.

ACCA has introduced major innovations to its flagship qualification to ensure its members and future members continue to be the most valued, up to date and sought-after accountancy professionals globally.

Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. More information is here: www.accaglobal.com