{"id":169723,"date":"2025-04-03T20:19:05","date_gmt":"2025-04-03T20:19:05","guid":{"rendered":"https:\/\/peraltafinancing.com\/accounting\/hmrc-target-ess-with-new-round-of-nudge-letters\/"},"modified":"2025-04-03T20:19:05","modified_gmt":"2025-04-03T20:19:05","slug":"hmrc-target-ess-with-new-round-of-nudge-letters","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=169723","title":{"rendered":"HMRC target ESS with new round of nudge letters"},"content":{"rendered":" \r\n

Menzies LLP – A leading chartered accountancy firm.<\/p>\n\n<\/a>\n\n

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What is ESS?<\/h2>
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Electronic Sales Suppression (ESS) is more widely known as till fraud. It is where a business manipulates their till systems to hide or reduce the true value or amount of sales but the data reported looks like a complete and accurate record. ESS is a form of tax fraud and individuals who make ESS systems; use or promote them are all considered to be involved in the fraud.<\/p>\n

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What is happening now?<\/h3>\n\n\n\n
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HMRC are issuing letters to taxpayers they suspect of ESS as a final opportunity to make a complete, accurate and honest disclosure. If you receive a letter, this is a strong indication that HMRC have information and they will expect you to make a disclosure to reconcile any discrepancies already identified. To facilitate these disclosures HMRC have reopened their ESS disclosure facility<\/a> which was previously used in early 2023.<\/p>\n\n\n\n

HMRC are giving taxpayers only 30 days from the date of these letters being issued to log on to the dedicated disclosure service<\/a> and make a full disclosure. If you make a false or incomplete disclosure, HMRC can charge penalties of up to 100%.<\/p>\n\n\n\n

Throughout 2024<\/a>, HMRC conducted unannounced visits of businesses across England and Scotland that they suspected of using ESS. On some occasions these visits were usually accompanied by the launch of a criminal investigation.<\/p>\n\n\n\n

It is important to emphasise that taxpayers still have the ability to make voluntary disclosures<\/a>, which is encouraged because HMRC\u2019s penalties are less for voluntary \u2018unprompted\u2019 disclosures.<\/p>\n<\/div>\n\n\n\n

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What happens if I ignore the letter?<\/h3>\n\n\n\n
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HMRC have confirmed that if they do not receive a response to their letter within 30 days, they will take further action which could include:<\/p>\n\n\n\n