Restaurants are facing HMRC investigation

Date: 4th November 2011

Small businesses operating in the UK's restaurant sector could be encouraged to seek the assistance of a specialist accountancy service after HM Revenue & Customs (HMRC) launched a wave of investigations.

The department's new taskforce has begun investigating 531 establishments, 22 of which are now being considered for criminal prosecution or civil investigation of fraud procedures.

It comes as part of what HMRC describes as "intensive bursts of compliance activity in specific high-risk trade sectors and locations across the UK".

Figures have been processed for 45 businesses so far and at present £634,000 is under consideration, an average of £14,000 per business.

The nationwide investigation scheme is focussing on 150 firms in the north-west, 159 in London and 222 in Scotland.

Speaking at the launch of the taskforce earlier this year, Mike Wells, HMRC's Director of Risk and Intelligence, said: "This taskforce will come down hard on fast food outlets that have chosen to break the rules and evade the taxes they should be paying."

Posted by Emily Smith