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Businesses urged to disclose till misuse

Updated: Apr 5, 2023


HMRC have released the following request for till misuse to be disclosed...


Businesses misusing their tills to evade paying tax should make a voluntary disclosure to HMRC to pay what they owe or face severe penalties.


HMRC has detailed data identifying the name and address of businesses, that are suspected of using an Electronic Sales Suppression system (ESS) to manipulate records of their takings to reduce the amount of tax paid.


Users are now being urged to make a voluntary disclosure to HMRC by 9 April to pay what they owe. HMRC will follow-up with those who fail to come forward. This will mean more severe penalties.


By making a voluntary disclosure now, businesses will see their financial penalties reduced. Fines for those using ESS systems can be up to £50,000 if the tool is not removed or ceased to be used.


This is on top of penalties for not paying tax, which can be up to 100 per cent of the tax that is due, along with interest and payment in full of the evaded tax.


In the most severe cases those involved can face criminal prosecution. HMRC has already made a series of arrests in relation to ESS systems.


Businesses can make a disclosure using a simple form available on GOV.UK.


HMRC also encourages anyone with information about businesses using or selling ESS systems to report tax fraud or avoidance to HMRC quoting ‘ESS23’


We would recommend that anyone involved seek professional help. Please don't hesitate to contact us for assistance.

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