HMRC Cracks Down on Takeaways Using Tax Dodging Tech
Over the past month, HM Revenue and Customs (HMRC) officers have swooped on 24 hot food takeaways and restaurants. Their crackdown targets a sneaky tax cheat method known as Electronic Sales Suppression (ESS).
Fraud Investigations Intensify in Stoke and St Helens
HMRC’s Fraud Investigation Service is now probing deeper, holding three official caution interviews this month with suspects from Stoke and St Helens. ESS tools allow businesses to fiddle their electronic till records, underreport sales, and dodge tax.
Tax Evaders Urged to Come Clean Before It’s Too Late
A tiny fraction of UK takeaways are using these illegal ESS devices or software. HMRC warns: the longer cheaters hold out, the harsher their financial penalties will be. Since May 2023, over 50 businesses voluntarily disclosed undeclared income to avoid bigger fines.
Marc Gill, HMRC 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. Anyone using, supplying, making, or promoting ESS can face fines up to £50,000 or even 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.”
How ESS Works and HMRC’s High-Tech Hunt
ESS often involves hardware or cloud software that manipulates sales data. While tills ring up sales as normal, records can be deleted or rerouted, sometimes funneling money through offshore accounts.
HMRC is fighting back, using third-party intel like bank details and data from online food ordering platforms to sniff out undeclared income.
To report suspected ESS use or any tax fraud, HMRC urges whistleblowers and businesses to come forward via their online channels.
