Takeaways and restaurants across the country have been subject to unannounced visits as part of a crackdown on electronic till fraud after the launch of criminal investigations by HMRC’s Fraud Investigation Service.
A small minority of takeaways and restaurants in the UK are using Electronic Sales Suppression tools, involving software or devices that alter electronic point-of-sale records, thus underreporting a business’s sales and consequently evading tax.
Those involved are being urged to contact HMRC now before their wrongdoing is detected. The longer a business delays in disclosing information, the higher the financial penalties will likely be. Since May 2023 the department has received more than 50 voluntary disclosures from businesses about their undeclared sales.
Marc Gill, HMRC’s Director of Individuals & Small Business Compliance, said: “ESS tools give businesses the appearance of trading legitimately, but in reality they are stealing tax that should be helping fund our vital public services.
“We have sophisticated ways of detecting this type of fraud and anyone using, supplying, making or promoting ESS can face fines of up to £50,000 or criminal prosecution.
“We urge those involved to come forward and use our disclosure facility on gov.uk rather than wait for us to contact you – it could lead to a reduction in financial penalties.”
ESS tools are usually hardware or cloud-based software that allow businesses to understate their income in various ways. Sales are put through the till as normal, but the system allows records to be manipulated – sometimes by deleting sales and linking to either domestic or offshore payment platforms.nline food ordering platforms, to check against what has been declared.
As well as a voluntary disclosure form, HMRC also encourages anyone with information regarding ESS or any form of tax fraud to contact them online.
