Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps her Department is taking to ensure compliance with employment and tax regulations among cash-based businesses operating on the high street.

HMRC is committed to ensuring that the tax system operates fairly and efficiently and creates a level playing field for all compliant businesses. Most businesses pay what they owe, but a minority fail to register or only declare a portion of their earnings for tax. This minority deprives our vital public services of funding, affects fair competition between businesses and places unfair burdens on everyone else.

The Government’s position is that cash is a legitimate means of paying for goods and services and continues to be used by many people across the UK. However, regardless of the type of payments a business receives, it is their responsibility to ensure they meet their tax obligations, including registering for and paying the right taxes.

HMRC are making it increasingly difficult for businesses to hide their income by using improved targeting with new data sources and risking technology, greater access to third party data and through focused compliance activity, working with other Government agencies and law enforcement.