Simply Business - Insurance for your business

Call Us0333 0146 683
Our opening hours
Knowledge centre

Shops at risk as HMRC crackdown on cash

1-minute read

Shops at risk as HMRC crackdown on cash
Josh Hall

Josh Hall

29 September 2016

Shopkeepers across the country are in HMRC’s sights following the start of a new crackdown on cash payments.

The Revenue is analysing returns made by shops and restaurants, and crosschecking them against the number of card payments they take.

  • How to prevent shoplifting

It believes that such businesses may not be declaring all of the cash payments that they take. It is estimated that around a third of transactions in businesses of this sort are paid for in cash.

It is thought that HMRC will consider investigating businesses that record more than 90 per cent of their transactions as paid for by card.

Lengthy investigations on the horizon?

But there is concern that the plans could lead to length and unnecessary investigations, which can be financially damaging for small businesses.

Speaking to the Daily Mail, an Association of Chartered Accountants spokesperson said: “HMRC has made it clear it is not 100 per cent sure how good its data is. The taxman needs to be sure business owners don’t end up being wrongly vilified.”

The move is the latest in a string of HMRC initiatives aimed at cracking down on undeclared cash payments - as 17 tradesmen recently found out.

In 2010 Treasury minister David Gauke caused controversy by suggesting that consumers had a moral obligation to avoid cash-in-hand payments to workers of this sort, which he said contributes to a £2 billion ‘hidden economy’ loss to the public purse.

All set with retail insurance?

As the UK's biggest business insurance provider, we protect more shops, trades and retailers than anybody else for the likes of public liability insurance and more. Why not take a look now and build a quick, tailored shop insurance quote?

Check your cover

We create this content for general information purposes and it should not be taken as advice. Always take professional advice. Read our full disclaimer

Find this article useful? Spread the word.


People also liked

Landlords could be targeted in new capital gains tax raid.

19 November 20202-minute read

Landlords could be targeted in new capital gains tax raid

Landlords could be hit by another massive tax raid, as the Office of Tax Simplification outlines its recommendations for an overhaul of…

Read more

Keep up to date with Simply Business. Subscribe to our monthly newsletter and follow us on social media.

Subscribe to our newsletter


Popular articlesBusiness resources from FarillioGeneral businessGuestInsuranceLandlordLandlord resources from FarillioLegal and financeMarketingNewsOpinionProperty maintenanceTradesmanCovid-19 business support hub


6th Floor99 Gresham StreetLondonEC2V 7NG

Sol House29 St Katherine's StreetNorthamptonNN1 2QZ

© Copyright 2021 Simply Business. All Rights Reserved. Simply Business is a trading name of Xbridge Limited which is authorised and regulated by the Financial Conduct Authority (Financial Services Registration No: 313348). Xbridge Limited (No: 3967717) has its registered office at 6th Floor, 99 Gresham Street, London, EC2V 7NG.