Question to the HM Treasury:

To ask Her Majesty's Government what estimate they have made for each of the last six financial years of the revenue lost as a consequence of carousel fraud.

The latest available estimates of the amount of VAT lost to Missing Trader Intra-Community (MTIC) fraud for the last five years are published annually in the Chapter 2 of the ‘Measuring tax gaps’ publication^[1]. For 2015-16, this was estimated at £0.5-1 billion.

Further ‘Measuring tax gaps’ online tables are published giving the estimate of the VAT lost to MTIC fraud since 2005-06^[2].

The MTIC tax gap estimates includes multiple types of fraud not traditional carousel fraud alone.

The estimates are published as a range to reflect the uncertainty in the estimation of the MTIC tax gap.

[1] https://www.gov.uk/government/statistics/measuring-tax-gaps

[2] https://www.gov.uk/government/statistics/measuring-tax-gaps-tables