HMRC Cracks Down on Till Fraud: Three Arrested in Nationwide Sweep
HM Revenue and Customs (HMRC) has launched a major crackdown on till fraud, arresting three suspects and raiding 30 businesses across nine counties in a single day. The move comes after the government rolled out tough new powers to tackle Electronic Sales Suppression (ESS) systems used to dodge tax.
£50,000 Fines for ESS Suppliers and Users
Businesses that produce, promote, or supply ESS software face hefty fines of up to £50,000 and serious criminal probes. ESS tricks point-of-sale systems to underreport sales, cheating HMRC out of tax revenue. Users of such dodgy systems also risk heavy fines as HMRC steps up its war on tax evasion.
Three Arrested in Nottinghamshire Raid
On May 18, 2022, HMRC officers stormed 30 companies across nine counties. In Nottinghamshire, two men aged 43 and 58, and a 56-year-old woman were nabbed on suspicion of fraud linked to ESS software supply. Authorities seized computers, digital devices, and paperwork from three addresses. All three suspects have been released while investigations continue.
HMRC Bosses Warn: ESS Users Face Criminal Charges
Lucy Frazer, Financial Secretary to the Treasury: “The vast majority of businesses pay their taxes and, rightly, expect HMRC to intervene where necessary to ensure a level playing field for all. Tax evasion does not stop, and neither do we; the new powers available to HMRC enable them to crack down on ESS and help recover tax revenues to fund our critical public services.”
Marc Gill, HMRC Director of Individuals and Small Business Compliance: “Electronic Sales Suppression gives the appearance that a business is operating legally, when in fact it is stealing money from taxpayers. We encourage anyone who uses, supplies, manufactures, or promotes ESS to report through our disclosure facility. Not only is making a disclosure the right thing to do, but it may also result in a reduction in financial penalties.”
HMRC Calls for Whistleblowers
ESS users rig their Electronic Point of Sale (EPOS) systems to hide true sales, with end-of-day reports manipulated to show lower takings. HMRC can recover lost taxes and pursue criminal charges over ESS fraud.
Anyone involved in making, using, or selling ESS systems is urged to come forward via HMRC’s voluntary disclosure scheme — which could slash penalties for those who self-report now.
