Help with Tax investigations – CASH ONLY

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Lockdown – CASH ONLY

Fish and chip shops, restaurants and take-aways beware
Market Traders and Farm Shops keep those records!

HMRC are busy noting down those shop signs that are springing up everywhere lately showing “Cash Only”

So, what’s the problem?

Well it has been reported to me by HMRC that they have seen a prevalence of food take-away establishments remaining open throughout the Covid19 lockdown with such ‘cash only’ signs in the windows and what is this indicating to a sceptical investigator? Maybe that ‘on paper’ the business has been actually closed under lockdown?

As no card payments will appear in the business bank accounts then the cash can be understated or entirely omitted from the accounts of the business thus escaping tax!

As serious is the fact that government furloughing money may have been paying their staff and or the directors whilst clearly still open for business!

Watch this space as the papers will be full of these cases as HMRC trawl the streets looking for cases to tax and prosecute.

A spokesman for HMRC said: “HMRC can already refuse to pay claims that they think are fraudulent or abusive, but these measures will ensure we can properly investigate and recover overpayments and penalise deliberate abuse of the schemes.”

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