Do people still think ‘big businesses’ not paying tax is a huge gap in our finances?
As a tax advisor, I’m genuinely curious whether people still think tax avoidance by multinationals and HNWIs is genuinely rampant in 2026.
From my side, the international tax world has changed massively over the last 10 to 15 years through BEPS reforms, transfer pricing enforcement, disclosure rules, economic substance requirements and now Pillar Two.
What I also think gets missed is that HMRC’s own figures show the biggest part of the UK tax gap comes from small businesses, not large corporates. Small businesses make up roughly 60% of the tax gap, whereas large businesses are usually around 10% or less.
The compliance burden on large groups now is huge, and most sizeable businesses are far more conservative than people seem to realise.
Obviously planning still exists, but the days of huge groups just shifting profits offshore and paying nothing feel largely gone to me.
Feels like a lot of the public discussion is still based on how things looked 10 or 15 years ago, with people shouting ‘yea but Starbucks’ at clouds