The Inland Revenue has launched a series of unannounced visits on takeaways and restaurants as part of a crackdown on electronic till fraud.
HMRC undertook visits to 20 locations in London, St Helens, Edinburgh, and Stoke over the past four weeks, with 24 hot food takeaways and restaurants targeted.
The visits coincided with the launch of criminal investigations by HMRC’s Fraud Investigation Service, which are conduction three interviews under caution this month.
Business Desk reports that a small minority of takeaways and restaurants in the UK are using Electronic Sales Suppression (ESS) tools, which are software or devices that alter electronic point-of-sale records. These can be used to under-report sales and consequently evade tax.
To investigate ESS in the takeaway and restaurant sector, HMRC uses third party information, including bank account and transactional data from online food ordering platforms to check against what has been declared.
Since May 2023, HMRC has received more than 50 voluntary disclosures from businesses about undeclared sales, with those involved urged to contact the department before wrongdoing is detected. Financial penalties will likely be higher the longer a business delays in disclosing information.
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.”
