Are the wealthy dodging more tax than previously thought?

A new report suggests tax non-compliance among the wealthy could be worse than previously imagined. Is an overly complex system partly to blame?

Wealthy man on boat
(Image credit: Mystockimages via Getty Images)

Each year, the taxman publishes a “wealthy tax gap” – an estimate of how much tax is going unpaid by wealthy individuals. Tackling this gap is one of HMRC’s key objectives. Wealthy individuals are defined by HMRC as those who earn more than £200,000, or have assets worth £2 million.

The amount of additional tax HMRC has collected through its compliance work has more than doubled over the past five years, from £2.2 billion in 2019/20 to £5.2 billion in 2023/24. While this is good news for the taxman, it could also suggest non-compliance is more of a problem than previously thought.

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Katie Williams
Staff Writer

Katie has a background in investment writing and is interested in everything to do with personal finance, politics, and investing. She enjoys translating complex topics into easy-to-understand stories to help people make the most of their money.

Katie believes investing shouldn’t be complicated, and that demystifying it can help normal people improve their lives.

Before joining the MoneyWeek team, Katie worked as an investment writer at Invesco, a global asset management firm. She joined the company as a graduate in 2019. While there, she wrote about the global economy, bond markets, alternative investments and UK equities.

Katie loves writing and studied English at the University of Cambridge. Outside of work, she enjoys going to the theatre, reading novels, travelling and trying new restaurants with friends.