Electronic sales suppression targeted

HMRC has written to small businesses it suspects of misusing their till systems to evade paying tax on sales known as electronic sales suppression (ESS). A business with undeclared income should disclose it within 30 days of the date of the letter. This can be done using the dedicated ESS disclosure facility on GOV.UK although the letter suggests that in some cases it may be better to use the contractual disclosure facility.

The campaign is targeting businesses which might not have paid the correct amount of income tax corporation tax and/or VAT due to misuse of their till systems. The letter provides an opportunity for businesses to get their tax affairs in order by coming forward voluntarily and disclosing undeclared sales. It explains the different penalties that can be charged and also what further action could be taken by HMRC...