Corporate report

Tax by different customer groups – 2021 to 2022

Published 18 July 2022

Every year, we collect revenues from millions of individuals and from businesses of all sizes. To help us do this, we segment our customers into groups so we can identify their needs and risks more accurately and tailor our responses accordingly.

The information below shows key performance data for our customer groups during 2021 to 2022. There are some differences between the way we segment receipts between customer groups and how theoretical liabilities are segmented when calculating tax gaps. For example, as employers operate PAYE schemes, we evaluate compliance in PAYE within the tax gaps for small, mid-sized and large business customer groups.

Individual customers: population 32 million (Income Tax payers)

Individuals are by far our largest customer group and many claim tax credits and other entitlements from us, as well as paying taxes. In 2021 to 2022 they were defined as having incomes below £200,000 and assets below £2 million in each of the last 3 years.

• £285bn estimated PAYE and National Insurance Contributions (NIC) receipts collected (to nearest £5 billion) [1, 3]
• £15bn estimated receipts – from other taxes [4]
• £2.7bn estimated compliance yield generated from our activities (to nearest £0.1 billion) [2]
• £410m estimated spend on compliance activities (to nearest £10 million)
• £2.5bn estimated tax gap estimate for 2020 to 2021 (to nearest £0.1billion)

Wealthy individuals: population 800,000

Wealthy individuals often have complex tax affairs covering multiple taxes. In 2021 to 2022 they were defined as having incomes of £200,000 or more, or assets equal to or above £2 million in any of the last 3 years.

• £55bn estimated PAYE and NIC receipts collected (to nearest £5 billion) [1, 3]
• £45bn estimated receipts – from other taxes [4]
• £2.5bn estimated compliance yield generated from our activities (to nearest £0.1 billion)
• £220m estimated spend on compliance activities (to nearest £10 million)
• £1.5bn estimated tax gap estimate for 2020 to 2021 (to nearest £0.1billion)

Small businesses: population 5.3 million

Small businesses represent more than 95% of businesses in UK. In 2021 to 2022 they were defined as having turnover below £10 million and typically fewer than 20 employees.

• £75bn estimated PAYE and NIC receipts collected (to nearest £5 billion) [3]
• £95bn estimated receipts from Corporation Tax, VAT, and other taxes (to nearest £5 billion) [4]
• £7.6bn estimated compliance yield generated from our activities (to nearest £0.1 billion)
• £550m estimated spend on compliance activities (to nearest £10 million)
• £15.6bn estimated tax gap estimate for 2020 to 2021 (to nearest £0.1billion)

Mid-sized businesses, charities and public bodies: population 270,000 (CT Live Entities)

Mid-sized businesses make up less than 5% of UK businesses, but some are growing rapidly, making their tax affairs increasingly complex. In 2021 to 2022 they were defined as having turnover between £10 million and £200 million, or typically 20 or more employees.

• £125bn estimated PAYE and NIC receipts collected (to nearest £5 billion) [3]
• £50bn estimated receipts from Corporation Tax, VAT, and other taxes (to nearest £5 billion) [4]
• £3.5bn estimated compliance yield generated from our activities (to nearest £0.1 billion)
• £270m estimated spend on compliance activities (to nearest £10 million)
• £3.9bn estimated tax gap estimate for 2020 to 2021 (to nearest £0.1billion)

Large businesses: population 2,000

Large and complex businesses play a pivotal role in the UK economy. In 2021 to 2022, they were broadly defined as having turnover exceeding £200 million or £2 billion in assets, but we look at other factors such as complexity, level of risk and global mobility.

• £140bn estimated PAYE and NIC receipts collected (to nearest £5 billion) [3]
• £170bn estimated receipts from Corporation Tax, VAT, and other taxes (to nearest £5 billion) [4]
• £10.2bn estimated compliance yield generated from our activities (to nearest £0.1 billion)
• £260m estimated spend on compliance activities (to nearest £10 million)
• £3.6bn estimated tax gap estimate for 2020 to 2021 (to nearest £0.1billion)

Notes

1. PAYE receipts are included in the total receipts for individual and wealthy customer groups, whereas the PAYE tax gap is reported as part of the tax gaps for small, mid-sized and large business customer groups.
2. Some compliance yield and activities are directed towards organised crime, which is not included in this summary.
3. Estimated PAYE and NICs receipts collected from small, mid-sized and large businesses but paid by individual and wealthy customers.
4. Estimated receipts from other taxes includes Self Assessment tax.