HMRC Cracks Down on Takeaways Using Dodgy Till Tech
Over the past month, HM Revenue and Customs (HMRC) officers have swooped on 24 hot food takeaways and restaurants. The raids come as part of a new crackdown on businesses using Electronic Sales Suppression (ESS) tools to cheat on their taxes.
Criminal Probes Underway in Stoke and St Helens
HMRC’s Fraud Investigation Service has launched full criminal investigations. This month, three individuals from Stoke and St Helens are being interviewed under caution over suspected use of ESS software that masks real sales income.
ESS Tools: The Taxman’s New Foe
ESS devices and software manipulate point-of-sale systems to hide actual sales and dodge tax. Though only a small number of takeaways are involved, HMRC warns the penalties are harsh. Fines can hit up to £50,000, plus the risk of criminal charges.
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.”
How HMRC Is Breaking the Code
- ESS usually involves hardware or cloud software that deletes or hides sales records.
- Some link to domestic or offshore payment platforms to cover tracks.
- HMRC cross-checks bank data and online food order transactions against declared sales to spot cheats.
- More than 50 businesses have voluntarily admitted to undeclared sales since May 2023.
HMRC urges anyone with tips or caught up in ESS scandals to come clean immediately and avoid severe penalties.
