REFNATION
EconomyNationalClosed · Final

Should HMRC increase enforcement to close the £17.3bn small company corporation tax gap?

Yes 60%No 40%52 votes cast

Small UK companies fail to pay £17.3 billion in corporation tax annually, almost half of the £38.7 billion they owe. This forms the largest and fastest-growing part of the overall £59.2 billion UK tax gap for 2024-25. HMRC has reduced active enforcement while Companies House allows abusive firms to dissolve without consequence.

Jump to opinions· 2

Behind the comfortable margin for HMRC to go harder on the £17.3bn small company tax gap sits an unusually lopsided coalition. The 16-24s backed enforcement almost to a person, and the over-65s weren't far behind, but the 25-34 group — the very cohort most likely to be founding or working in small firms themselves — tipped narrowly the other way, and the 55-64s split exactly evenly.

The gender divide was just as pointed: men voted for tougher enforcement by roughly two to one, while women leaned against it, a gap wide enough to suggest this wasn't simply a question of tax morality but of who feels exposed to HMRC's attention. Read together, the age and gender patterns hint at a fault line less about principle than proximity — those closest to running a small business, or most likely to be one, were warier of handing HMRC more teeth.

The vote lands on ground Britain knows well from the "tax gap" debates of the last decade — the tension between chasing large-scale avoidance and squeezing ordinary small traders, and the recurring complaint that Companies House lets companies dissolve their way out of liability. Enforcement wins the argument in principle here, but the coalition behind it looks thinner than the headline suggests.

A 20-point win that masks a house divided along exactly the lines you'd expect: those with least skin in the game were keenest for HMRC to bare its teeth.

LeftCentreRight
  • Ethan· 132
    The Nuclear RealistCentre
    YES
  • W
    Wazzock· 147
    The Redistributive DisciplinarianLeft
    NO
  • The Constitutional ContrarianLeft
    YES
  • F
    Flipflops· 405
    The Accountable ModerateCentre
    YES
  • M
    mpwban· 186
    The Rearmed StatistLeft
    YES
  • The Tax-and-Spend RealistCentre
    YES
  • LB1312· 28
    The FounderHard Left
    YES
  • The Compassionate Constitutional HereticLeft
    YES
  • S
    Sorrel· 306
    The Self-Reliance EnforcerRight
    YES
  • N
    natalie· 68
    The Ledger PragmatistCentre Left
    YES
  • ThisisKaj· 379
    Leader of PeopleCentre Left
    YES
  • O
    osiris· 509
    The ContenderRight
    NO
  • Nik· 470
    The Democratic Workplace DissenterLeft
    NO
  • Artikel5· 230
    The Constitutional Border DissenterCentre Right
    NO
  • M
    Mark· 255
    The Carbon-Conscious HardlinerRight
    YES
  • Angel· 481
    The Constitutional EnforcerRight
    NO
  • lixhul· 449
    The LawgiverRight
    YES
  • refnation· 635
    The HostRight
    YES
  • K
    The BellwetherCentre Right
    YES
  • T
    Ted_e_boy· 122
    The Firm-Hand PragmatistCentre Right
    YES
60%
Yes · 31 votes
40%
No · 21 votes
Yes No
By gender
Male
67/33
Female
40/60
By age
16–24
83/17
25–34
44/56
35–44
55/45
45–54
100/0
55–64
50/50
65+
80/20
By political leaning
H. Left
100/0
Left
78/22
C. Left
56/44
Centre
46/54
C. Right
63/37
Right
60/40
H. Right
0/100
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Debate

2 Opinions

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osiris· 509
The Contender
Voted noRight

The problem is companies closing without ever filing. HMRC are guessing at the CT debt, as they have never seen records, and the companies are scams, so likely no real records exist. Unlikely to result in net income.

Glasses· 342
The Sovereignty Enforcer
Voted yesRight

If everyone paid would it then bring down the tax rate!