Electronic sales suppression
Guidance on electronic sales suppression (ESS), also known as till fraud or till manipulation, and information on how to make a disclosure.
Electronic sales suppression (ESS) is where a business manipulates their till systems to hide or reduce the true value or amount of sales. This is done through use of ESS tools such as misusing built in till functions or installing software specifically designed to suppress sales.
Misusing a till system reduces the recorded turnover of the business and the amount of tax a business should be paying, whilst providing what appears to be an accurate and complete record
ESS is tax fraud. You are involved with ESS if you have made, supplied, promoted, possess or have access to an ESS tool.
Guidance on electronic sales suppression
This factsheet explains what powers we can use to help us identify and tackle ESS. It also explains the penalties we may charge if you are involved in ESS.
Tell HMRC about electronic sales suppression
HMRC is offering an opportunity for those involved in ESS to make a disclosure. Early voluntary disclosure could lead to a reduction in financial penalties. Use the 鈥楳ake a disclosure about misusing your till system鈥� form to tell HMRC that you鈥檝e been using your till system to reduce your tax bill.
If you are aware of a person or business is involved in ESS, you can report details of that fraud, or any other fraud or avoidance, using the 鈥楻eport tax fraud or avoidance to HMRC鈥� form.
HMRC鈥檚 approach to fraud
HMRC takes tax fraud seriously. HMRC can commence a criminal investigation into tax fraud with a view to prosecution or, if appropriate, carry out a civil investigation under Code of Practice 9.