HMRC continues to target till fraud

Posted on 9th April 2024 by Streets - General

HMRC has, for many years, looked to target businesses that deliberately undertake electronic sales suppression (ESS). ESS happens where a business deliberately manipulates its electronic sales records in order to hide or reduce the value of individual transactions.

This type of fraud is hard to spot as it tries to reduce the recorded turnover of the business and the corresponding tax liabilities while providing what appears to be a credible and compliant audit trail. This can be done by misusing built in till functions or installing software specifically designed to suppress sales.

HMRC officers are continuing to target businesses across the country that are suspected of being involved in making, supplying or promoting ESS systems. These businesses can face fines of up to £50,000 and criminal investigations. HMRC is also actively targeting users of these systems who will also face having to pay back tax evaded, financial penalties and possible criminal convictions. HMRC has confirmed that they will continue to contact and target till fraud throughout 2024.

HMRC is also urging affected businesses to voluntarily come forward and use the online portal to disclose their undeclared sales and stop using ESS software immediately. If businesses do not come forward, HMRC may issue an assessment and open an investigation, and harsher penalties will apply.

No Advice

The content produced and presented by Streets is for general guidance and informational purposes only. It should not be construed as legal, tax, investment, financial or other advice. Furthermore, it should not be considered a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset. The information provided by Streets is of a general nature and is not specific for any individual or entity. Appropriate and tailored advice or independent research should be obtained before making any such decisions. Streets does not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of obtaining Streets' visual or audible content.

Information

The content used by Streets has been obtained from or is based on sources that we believe to be accurate and reliable. Although reasonable care has been taken in gathering the necessary information, we cannot guarantee the accuracy or completeness of any information we publish and we accept no liability for any errors or omissions in material. You should always seek specific advice prior to making any investment, legal or tax decisions.