Question to the HM Treasury:

To ask His Majesty's Government, further to the answer by Baroness Vere of Norbiton on 22 November (HL210), how many successful prosecutions there were as a result of HMRC investigations into the activities of the activities of businesses which advertise their services on a cash only basis in the financial year ended 2022–23.

As referenced in the answer I gave on 22 November 2023 to PQ HL210 the Government is committed to creating a level playing field for all sectors by ensuring that everyone pays the right amount of tax at the right time. Like all other businesses, those which exclusively accept cash must meet their tax obligations. HMRC use a range of interventions, including civil and criminal investigations, to tackle non-compliance.

HMRC reserves complete discretion to conduct a criminal investigation in any case and to carry out these investigations across a range of offences and in all the areas for which the Commissioners of HMRC have responsibility. In 2022/23, 240 prosecutions were brought by the relevant prosecuting authority as a result of HMRC criminal investigations, securing 218 convictions for a range of offences.

The specific data requested – detailing prosecution numbers for businesses which advertise their services on a cash-only basis – is not available as HMRC systems do not segment data in a way that would allow the required analysis, and therefore this information would only be available at disproportionate cost.

Further information on HMRC’s approach to tackling fraud, including other performance information, can be found at HMRC performance update: April to June 2023 – GOV.UK (www.gov.uk)