Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps she is taking to ensure that full tax receipts are being obtained from cash-only businesses.

Cash continues to be used by many people across the UK and is a legitimate means of paying for goods and services. It is the choice of a business whether to accept or decline any form of payment and is based on factors such as customer preference and cost.

Like all other businesses, those which only or primarily accept cash must ensure they meet their legal obligations regarding tax, including that they register for and pay the right taxes at the right time.

Most taxpayers pay what they owe, but a small minority fail to register with HMRC or only declare a portion of their earnings. This small minority deprive our vital public services of funding, affect fair competition between businesses, and place unfair burdens on everyone else. The Government is committed to creating a level playing field for all by ensuring that everyone pays the right amount of tax at the right time. Closing the tax gap and making sure that more of the tax that is owed is correctly paid is one of the Government’s top priorities for HMRC. It is vital these revenues are collected to fund our essential public services.

HMRC is making it increasingly difficult for businesses to hide their earnings and have an extensive range of powers, including information gathering powers, that help build a picture of risk and identify those who are trying to abuse the system. HMRC’s approach to tax evasion aims to tackle current non-compliance and change future behaviours. Their activities include national campaigns and specialist task forces that incorporate intensive bursts of activity in targeted high risk trade sectors and locations across the UK. This includes providing customer education highlighting the importance of keeping accurate records.