- HMRC has published new guidance on Electronic Sales Suppression (ESS) and how to make a disclosure.
- ESS is also known as till fraud or till manipulation, where businesses manipulate their till systems to hide or reduce the true value or number of sales.
- ESS is done through the use of tools such as misusing built-in till functions or installing software designed to suppress sales.
- Businesses do this to reduce their turnover and pay less tax, as well as to appear compliant.
- An ESS tool is a piece of software, computer code script, or hardware that allows a business to hide or reduce the value of individual transactions on electronic sales records.
- You do not have to have used an ESS tool for HMRC to charge a penalty for being involved in ESS, as it is considered fraud regardless.
- HMRC has powers under the Finance Act 2022 to issue information notices for ESS and can ask for specific information related to ESS.
- A ‘relevant person’ is anyone who HMRC believes may be involved in ESS and can be charged a penalty.
- A ‘relevant purpose’ is the reason HMRC is asking for information about ESS and ESS tools, including understanding how the tools work and identifying other individuals involved.
- HMRC is offering an opportunity for those involved in ESS to make a disclosure, which could lead to a reduction in financial penalties.
Source: marcusward.co
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
