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Restaurant owners targeted in HMRC crackdown

HM Revenue & Customs (HMRC) has revealed that it is to hunt down tax evaders with a series of special units.

The restaurant sector across the UK will be focused upon initially, with tax evaders within the food trade weeded out. London eateries will be the focus of the HMRC crackdown at first, followed by those in Scotland and the North West.

Restaurants are seen as being 'high-risk' in terms of tax evasion, due to the cash tips which customers often pay to waiting staff.

HMRC's Mike Eland told the BBC that the plans were part of the drive to minimise the number of tax dodgers in a bid to raise more money through taxes.

“These task forces are a new approach which uses HMRC's resources to identify and tackle rule-breakers and evaders swiftly and effectively.

“Only those who choose to break the rules, or deliberately evade the tax they should be paying, will be targeted,” he said.

The focus on tax evaders within the food industry follows a similar crackdown on plumbers and more task forces are to be set up to investigate other sectors over the next few years.

The Chartered Institute of Taxation's Gary Ashford, said to the BBC, “HMRC have a range of sources of evidence available to them and we assume that they have been doing their homework so they can target their anti-evasion efforts.

“Careful targeting is needed as the one fear with this initiative is that those who make genuine mistakes over their tax affairs might be caught up in this drive,” he added.



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