Question to the HM Treasury:

To ask His Majesty's Government what action they intend to take to ensure that businesses trading on a cash-only basis are paying the required tax.

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.

Cash is a legitimate means of paying for goods and services, but sometimes cash payments/transactions are used to deliberately facilitate tax evasion.

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 targeted activity in high risk trade sectors and locations across the UK. HMRC also work with customer groups and third parties, such as other local and central Government agencies, to reduce error and fraud within these sectors. This includes providing customer education highlighting the importance of keeping accurate records.

HMRC take reports of suspected tax evasion seriously and operate a confidential Fraud Hotline.

The Government will continue to consider options to tackle cash-facilitated evasion.