HMRC Task Force to Target Restaurants for Tax Investigations

HMRC recently announced that they will be targeting restaurants for tax investigation by way of a trade specific task force with a view to detecting tax evasion and collecting tax and national insurance which they believe is due.

These tax investigations will be undertaken by a dedicated team of tax investigators who will have knowledge specific to the issues and potential areas of tax evasion that HMRC believe are prevalent in the restaurant industry.

The tax investigations will take many forms and it has not ruled out that in addition to the normal tax investigation route there will be some conducted under the Civil Investigation of Fraud procedures and also some Criminal Investigations.  Certainly the teams will include some people from the Civil Investigation of Fraud teams and from the Criminal Investigation Unit who will be looking for opportunities to expand the tax investigation into these areas.

Unlike previous initiatives where HMRC have asked people like plumbers and medical practitioners to come forward on a voluntary basis rather than face a tax investigation these tax investigations into restaurants will only be undertaken where HMRC believe that there has been a tax fraud by the restaurant.

It is believed that the tax investigation into the restaurants will cover all taxes including, where appropriate, the tax affairs of the restaurateur,  VAT, operation of Pay as You earn on staff wages and tips.

In addition to any additional tax found as the result of the tax investigation the restaurateur will be liable for interest and penalties as a result of the tax investigation.  He or she will also be at risk of HMRC using their name and shame powers to publish details of the person subject to the tax investigation.

The tax investigations into restaurants will be conducted over geographical locations with London to be the first followed by Scotland and then the North of England.

If you are the owner of a restaurant, now may be the time to ensure that if you do have issues then these are volunteered to HMRC which usually results in more lenient treatment and can be managed much more effectively if done right.

At Gilbert Tax we have helped a number of restaurants who have come under scrutiny by HMRC and are familiar with all of the relevant areas of tax risk and how to help manage these.

Gilbert Tax Will deal with HMRC for you

For most people, the simple thought of having to deal with an Inland Revenue Investigation is so terrifying that they avoid the issue altogether and often find themselves in even greater tax difficulties. There is no need to let problems large or small with the HMRC escalate to the point where your quality of life and happiness suffer.

At Gilbert Tax, we have over eighty years experience in finding closure for clients dealing with Inland Revenue investigation and significant experience in dealing with the tax evasion issues. We are also skilled in negotiating with HMRC, relative to tax evasion, so as to avoid or limit financial penalties for the individuals or businesses who find themselves subject to a tax investigation.

For a private discussion of your tax matters, please call Gilbert Tax on 0800 734 3333 or email us at scott.gilbert@gilberttax.co.uk

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