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The UK's tax gap has risen for the first time in six years to £35billion, it was revealed today.
The difference between the tax expected and what was actually paid was equivalent to 5.3 per cent in 2019-20, official figures showed.
That was up from 5 per cent, or £33billion, in the 2018-19 tax year - the first time the level has gone up since 2013-14.
However, it is still far below the peak of 7.5 per cent recorded in the mid-2000s.
Failure to 'take reasonable care' accounted for a significant chunk of the tax gap last year, at £6.7billion, with avoidance accounting for £1.5billion.
Some £3.7billion of the gap is estimated to be due to error and £3billion due to the 'hidden economy'.
The difference between the tax expected and what was actually paid was equivalent to 5.3 per cent in 2019-20, official figures showed
The tax gap for wealthy individuals fell from £1.6billion in 2018-19 to £1.5billion in 2019-20, HMRC