In 2024-25, the tax gap hit £59.2bn, up from £52.8bn the previous year, and the highest number ever recorded, although HMRC points to the overall 6.4% tax gap figure for the latest tax year as being lower than the final result in 2022-23 where the final figure ended up at 6.6% after adjustments.

The actual amount of uncollected tax is the highest figure ever recorded since HMRC started reporting this data in 2005-06. Pre pandemic in 2019-20, the tax gap was £40.1bn, already the worst year ever at 6%. On the current trajectory, it is not clear whether HMRC will be able to get to grips with the small business tax problem, despite thousands of new compliance officers being hired and armed with AI tools.