HMRC Targets Businesses in Crackdown on Electronic Till Fraud
Takeaways and restaurants beware ...
Posted by Helen Beaumont on 13/12/2023 @ 8:00AM
The use of electronic sales suppression tools is a growing concern for HMRC, as it allows businesses to under-report their sales and evade taxes. These tools can be used to delete or alter transactions ...
HMRC is determined to root out till fraud tax evasion at takeaways and restaurants!
As this allows businesses to keep a portion of their sales off the books and avoid paying the appropriate amount of tax HMRC has been ramping up their efforts to combat this type of tax evasion, with the recent unannounced visits and criminal investigations being just one aspect of their strategy.
"HMRC has been working with software developers and industry bodies to identify the use of ESS tools!"
The visits to takeaways and restaurants in Edinburgh, London, St Helens, and Stoke were conducted by HMRC officers over the last four weeks. The purpose of these visits was to gather evidence and identify businesses that may be using ESS tools to evade taxes. As a result, three individuals are now being interviewed under caution, with the potential for further action to be taken against them.
According to HMRC, the use of ESS tools is not widespread, but it is a growing problem that needs to be addressed. The tax authority estimates that the use of these tools costs the UK government billions of pounds in lost revenue each year. By cracking down on this type of tax evasion, HMRC hopes to level the playing field for businesses and ensure that everyone pays their fair share of taxes.
"Businesses found to be using ESS tools may face severe penalties!"
This includes criminal prosecution, fines, and even imprisonment. In addition, they will be required to pay the taxes they have evaded, along with any interest and penalties. This can have a significant impact on the financial stability of a business, as well as its reputation.
HMRC has also issued a warning to businesses that may be tempted to use ESS tools. The tax authority can access electronic records and data, which can be used as evidence in criminal investigations. This means that businesses cannot hide their use of these tools from HMRC, and they will eventually be caught.
Furthermore, HMRC is also encouraging members of the public to report any suspicious activity they may come across. This includes businesses that are not providing receipts or those that are offering significant discounts for cash payments.
"The public can help to identify businesses using ESS tools to evade taxes!"
HMRC's crackdown on electronic till fraud is necessary for tackling tax evasion and ensuring that businesses pay their fair share of taxes. The recent unannounced visits and criminal investigations serve as a warning to businesses that may be tempted to use ESS tools to manipulate their sales and evade taxes.
With the support of the public and cooperation from the industry, HMRC is determined to root out this type of tax evasion and protect the integrity of the UK tax system.
Until next time ...
HELEN BEAUMONT
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about till fraud and HMRC's investigation into takeaways and restaurants, it may be a great idea to give me a call on 01908 774323 and let's see how I can help you.
Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.
Tax Planning can make a considerable difference to your tax liability. Helen has specialist knowledge and experience in tax planning and uses every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.
When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.
No unauthorised use, duplication, distribution or modification to any original content contained within this blog is permitted without prior written permission of the author. All other trademarks and registered names are acknowledged.
