how much does tax fraud cost
The majority of this Â£20 billion is tax fraud which costs the economy Â£14 billion annually, or 69%. So we can see that both in absolute and percentage terms tax fraud is a much bigger issue than benefit fraud.o to get some perspective, benefit fraud represents 2% of the estimated total annual fraud in the UK. Public sector fraud, which includes benefit fraud, is Â£20.3 billion a year, so within this category it accounts for just under 8%.