HMRC focuses on eateries

HMRC is continuing to target restaurants and takeaways as financial stress makes tax evasion more tempting for smaller operators in the sector according to BDO LLP. 

The firm has found that restaurants and takeaways make up 26% (200 of 775) of businesses named by HMRC as ‘deliberate tax defaulters’ since December 2017.

HMRC has been especially active in the pursuit of lost tax through tips which can be difficult for it to monitor. BDO says that a failure to comply in this area could result in an investigation. 

Dominic Arnold partner at BDO said: ‘HMRC’s crackdown on tax evasion and avoidance continues with gusto and remains high on the government’s agenda. It has a range of taskforces focused on investigating the restaurant industry. 

‘The use of taskforces has proved very effective in the past and businesses need to be aware HMRC is going to continue to throw this kind of...