{"id":24563,"date":"2023-03-13T09:35:23","date_gmt":"2023-03-13T09:35:23","guid":{"rendered":"https:\/\/smh.group\/?p=24563"},"modified":"2023-03-13T09:35:23","modified_gmt":"2023-03-13T09:35:23","slug":"hmrc-targets-unreported-electronic-sales","status":"publish","type":"post","link":"https:\/\/devstagesite.co.uk\/smhgroup\/hmrc-targets-unreported-electronic-sales\/","title":{"rendered":"HMRC Targets Unreported Electronic Sales"},"content":{"rendered":"

It wasn\u2019t that long ago that HMRC was paying particular attention to businesses understating large cash sales. Now, the decline of cash, especially since Covid-19, has led to a proliferation of software used to suppress electronic sales records. <\/strong><\/p>\n

An electronic sales suppression (ESS) tool manipulates electronic sales records to hide individual transactions, whilst producing a credible audit trail. For example, only one out of every four sales might be recorded, resulting in lower reported turnover.<\/p>\n

Penalties, taxes and interest<\/strong><\/h2>\n

A penalty can be charged for simply being in possession of an ESS tool, regardless of whether it is actually used to suppress sales. Possession doesn\u2019t just mean owning an ESS tool, as it also includes having access to, or even trying to access, an ESS tool.<\/p>\n

For possession of an ESS tool, the initial penalty can be up to \u00a31,000. A penalty of up to \u00a375 a day will then be charged if possession or access to the ESS tool continues. The daily penalty is subject to a \u00a350,000 maximum.<\/p>\n