HM Revenue & Customs has admitted that as many as 3.5 million people should have been liable to pay just 10pc tax on their savings, during 2009/10 – rather than the 20pc tax that is automatically deducted. But a freedom of information request revealed that only 718,000 had applied to have this tax repaid.
Yes, we come to another conceptual problem with Ritchie\’s tax gap calculations. He doesn\’t take acount of those who overpay their tax.
And there are those who do.