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This surprises me not at all.
Its just a slightly fancier version of the standard till trick for a cash payment, of putting through the order, taking the cash and pressing cancel.
See all pretty much any pub or takeaway!
Puts a completely mockery of course on HMRC's over reliance on electronic data as being correct.
How about a new law along the lines of all directors of companies making POS software will be sent to jail for 10 years if their software does not record on one audit trail every entry made?
That should do it.
Sadly a good idea but I would suggest that developers of this type of software are probally not all UK based.
Making Tax Digial will get rid of this problem according to HMRC.......
The immediate thought is "show me the system, I will show you how to game it" - but I am surprised that this gaming is encouraged by the Software Providers. Once identified HMRC might ask for the name of the software used by the Business/Individual and compare to their list of miscreants.
A secondary thought is that once "cash" is replaced by "electronic payment" the EPOS will need to reconcile to the banking. On this point we begin to see how it can be then seen to be a "cash" issue. However, the existence of secondary banking would permit the Used Car favourite of keeping two sets of accounts, and even Electronic payment could be diverted.
In time however Digital will increase the power of tax authorities to reduce the potential for fraud. Reduce but not eradicate.
B word warning - With HMRC focused on Brexit now might be the time for Cash businesses to make hay! Not quite taking back control that was envisaged is it.
I agree, this is just the same old cash issue.
Electronic payments are reducing this problem year on year which is perhaps why the tax take is currently more than forecasted by the government!
I put a new electronic till in a pub 12 years ago, it was possible to edit the audit trail if you were an administrator and rooted around a bit. This is nothing new. All I see is HMRC picking on small businesses yet again. The simplest way to not record sales is to not put them through the till, void or cancel them if you already have them in the till or use another till for cash takings only. Editing that audit trail is probably the last thing you would do and is probably no different to any accounting software if you know how. I did see a similar till to the one I installed in another place and the staff added up what they thought in their heads and then threw the cash in the till without pressing any buttons.
Not surprised in the slightest. I work in industry for a very honest company, I don't know how I'd cope working in practice. I know a lot of self employed people, in face one of my best friends gets tax credits but manages to have nearly 100k in cars bought outright and a large house whilst working as a "struggling" plaster and supporting his wife and 2 children. I personally feel this is disgusting, but theres so many local examples of this, even oil rig workers claiming they earn £30k a year :(