Question to the HM Treasury:

To ask His Majesty's Government what is their latest estimate of the amount of income tax lost to fraud each year.

HMRC does not publish a stand-alone estimate of the Income tax gap arising from fraud.

However, ‘Measuring tax gaps 2023 edition’, published in June 2023, shows a reduction in the Income Tax, National Insurance contributions and Capital Gains Tax gap as a percentage of the theoretical tax liability from 4.5% in 2005-2006 to 3.0% in 2021-2022. The publication also provides illustrative estimates for fraud that are included in the criminal attacks and evasion components, plus a proportion of hidden economy and non-payment.