Fast food 'VAT dodgers' targeted by HMRC

Date: 13th July 2011

Small businesses around the UK could be tempted to seek the help of a specialist accountancy service to ensure their bookkeeping is up to date following an announcement from HM Revenue & Customs (HMRC).

The department has revealed that it believes there are a number of "VAT dodgers" operating in London's fast food sector and has said it will come down hard on those found to be operating outside of the rules.

According to HMRC, a number of outlets are deliberately keeping false records and mis-declaring their sales in order to reduce their tax obligations.

Mike Wells, HMRC's director of risk and intelligence, explained that a new taskforce will focus on investigating such practices and bringing firms to justice.

He commented: "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. Honest businesses have absolutely nothing to worry about.

"This taskforce comes hard on the heels of one launched last month targeting the restaurant sector in London. If you deliberately seek to evade tax HMRC can and will track you down, and you'll face not only a heavy fine, but possibly a criminal prosecution as well."

Posted by Thomas Fletcher