Taxpayers are paying too much

The UK Treasury believed that the so called “Tax Gap” referring to the difference between tax due and tax actually paid, would be closed as a result of the “Making Tax Digital” system. The initial trials of MTD involving pre-populated data obtained from employers, banks , DSS, Building Societies etc has shown that a majority of the 685,000 accounts in the trial resulted in more repayments than tax payable therefore leaving the tax gap very much intact