Notes of David Taylor (District Manager South) HM Customs and Excise

Kindly made available for SEOG members - 4 July 2003 Imber Ct

Contact Details:

Email: david.taylor@hmce.gsi.gov.uk

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Team deals with problematical areas of policing the tax - stopping short of fraud enquiries.

It deals with:

Accommodation addresses

Small dedicated team essentially works on infonnation from different sources.

Typical sources are

1. Other officers

2. IR databases

3. Other traders

4. Anonymous

5. New businesses taking over a deregistered business

6. Intelligence

7. Newspapers/flyers

8. Other agencies

9. Local knowledge

10. A "drive" in an area maybe by postcode. County shows etc.

11. Blitz i.e. builders boards, vans. workmen in area.

Types of business :-

1. General - involving cash and where customer does not want to suffer VAT i.e.

insurance companies and householders.

2. Builders / Fencing / Landscaping
3. Catering / Leisure
4. Hotels/B&B
5. Pubs
6. Taxi finns
7. Antique dealers
8. Market dealers
9. S/HCars

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1. VAT Started in April 1973 with 10% standard rate - now 17.5%
2. Is a tax on certain goods and services supplied in the furtherance of a business i.e. does not include hobbies. Not all Local Authority activities are subject to VAT
3. EXEMPT = Finance, property, Insurance, Medical, Education
4. Tax charged at each stage of supply - raw material, manufacturer wholesale, retail.
5. All businesses with a taxable turnover exceeding £56K per year must register, and at their PPOB.
6. Make quarterly returns and pay difference between output tax and input tax.
7. Our databases record all VAT registered businesses by name, trading style, address, Post Code and trade class.
8. Information is subject to taxpayers confidentiality. Protected by Official Secrets Act and Data Protection.
9. We share information with IR and DWP through legislation.
10. Limits on disclosure - public interest.

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i.e. NO requirement to have a cash register.

Traders MUST keep a record of DGT

Easy to suppress cash takings

1. Cash in back pocket

2. Cheques can be cleared through "cheque cashing business"

3. Credit cards - different "plate" on swipe machine.

Much easier in catering businesses where there is no VAT on food - cash purchases are suppressed.

How often do you see a proper bill (handwritten, unnumbered)?How often do you see a proper till being used?

If there is a till, is the window obscured.

Is the till left open?

Can you see a till roll?

CTN's - How often do you go in a newsagent and find the till drawer wide open?

Clubs etc. cash entrance fees - uncontrolled.

Public Houses - Optics containing generic spirits (cheaper), bootleg drink and

cigarettes - Catering - separate business (wife)?

Essentially too many to deal with.

Difficult to control by audit techniques - they only show you what they want you to

see.

ECHR has made it harder - right to privacy etc. - Now difficult to check car

registrations, telephone numbers

Overt

1. Audit techniques - reference material.

2. Invigilation - self and officer (explain)

3. Cash ups at close of business

Covert '

1. External obs - from a car/van or premises.
2. Test purchases