Small business owners across Lanarkshire have been urged to act after new figures showed firms of this size make up the largest share of the UK’s £59 billion tax gap. Advice Direct Scotland, which runs the free advice service taxadvice.scot, said it is vital that entrepreneurs understand their obligations and deal promptly with tax debts.
£59.2 Billion Tax Gap
Official HMRC figures published today show the estimated tax gap for 2024 to 2025 is 6.4 per cent, reflecting the difference between the tax expected and what has actually been paid. A total of £59.2 billion was unpaid, up from £52.8 billion the previous year following revisions to earlier estimates. Smaller firms account for 62 per cent of this shortfall, with failure to take reasonable care and errors cited as major causes.
Free Advice Available
Backed by HMRC, taxadvice.scot can provide support on a range of tax-related areas, including PAYE, National Insurance, and self-assessment. Andrew Bartlett, chief executive of Advice Direct Scotland, said: “More than a third of the tax gap stems from failure to take reasonable care and from simple mistakes. That tells us the problem is not always evasion but often confusion.”
“The figures are a reminder of how easy it can be for small businesses to fall foul of the tax system, often not through intent but because they are overwhelmed or unsure of what is expected of them. It’s important that any small business in Scotland struggling to deal with their tax requirements know that there is help available.”
Support for Scottish Businesses
Advice Direct Scotland is one of 12 voluntary and community organisations across the UK chosen by HMRC to provide tailored tax and benefits advice. It is the only organisation offering this service in Scotland. Bartlett added: “We are here to help small business owners understand what they owe and avoid common mistakes that lead to penalties. Whether you are checking your tax returns or struggling to pay, we offer free and confidential advice. People can visit taxadvice.scot or call 0800 756 3381 for support. If you’re unsure, get in touch. We can help you understand your obligations and avoid surprise tax bills, which can be tough to handle.”
