HM Revenue and Customs (HMRC) officers arrested three persons as part of a criminal investigation into the alleged supply of Electronic Sales Suppression (ESS) software.
The officers visited 30 businesses, including shops, takeaways and restaurants, across nine counties on 18 May in a day of action after new powers were introduced in the fight against till fraud.
Businesses involved in making, supplying or promoting the ESS systems that help users hide or reduce the value of till sales, now face fines of up to £50,000 and criminal investigations. Users also face fines as HMRC increases efforts to target the tax evasion practice.
“The overwhelming majority of businesses are paying their taxes and rightly want to see HMRC stepping in where needed to ensure a level playing field for all,” Financial Secretary to the Treasury Lucy Frazer said.
“Tax crime does not stand still and neither do we - the new powers available to HMRC allow them to clamp down on ESS and help recover tax revenues to fund our vital public services.”
Two men, aged 43 and 58, and a 56-year-old woman were arrested in Nottinghamshire on suspicion of fraud offences and cheating the revenue.
A search warrant was executed by HMRC officers at three addresses and computers, digital devices and paperwork was seized. All three suspects have been released under investigation.
“Electronic Sales Suppression gives the appearance a business is trading legitimately, when in fact they’re really just stealing money from taxpayers,” Marc Gill, HMRC’s director of individuals and small business compliance, said.
“We encourage anyone using, supplying, making or promoting ESS to report via our disclosure facility. Making a disclosure is not only the right thing to do it could also lead to a reduction in financial penalties.”
ESS users will either have access to specialist software or will configure their Electronic Point of Sale (EPOS) device in a specific way that allows them to consciously hide true sales and the resulting tax that is due.
Sales processed through the till give the impression they have been recorded as normal, however the end of day report is deliberately manipulated behind the scenes to reduce reported takings.
As part of investigations into ESS HMRC can also recover tax evaded and launch investigations that could result in criminal convictions.
HMRC has a voluntary disclosure facility and would encourage anyone using, making, supplying or promoting ESS to contact them. By making a disclosure now those using or benefitting from ESS could see their financial penalties reduced.
The Justice and Home Affairs Committee today (5) published a letter to the Minister for Policing, Crime and Fire Prevention, Dame Diana Johnson MP, highlighting how unacceptable levels of shop theft is causing serious harm to society.
After conducting an inquiry into retail crime, the committee finds that shop theft is an underreported crime that is not being effectively tackled, leading to a devastating impact on the retail sector and the wider economy. The Committee heard that there are almost 17 million incidents of shop theft annually, with few leading to an arrest and costing the retail sector almost £2 billion last year.
The nature of the offence has evolved from individualised offending to relentless, large-scale, organised operations accompanied by unprecedented levels of violence. Shop theft is now seen as a lucrative profit-making opportunity which is being exploited by organised criminal networks.
Pointing out that there is a widespread perception that shop theft is not treated seriously by the police, the Committee recognises the need for quicker reporting systems, better data collection and intelligence sharing between police forces across the UK.
The Committee welcomes the work of Pegasus, the new national scheme to tackle organised crime in the retail sector and recommends that existing schemes such as Business Crime Reduction Partnerships (linking police and local businesses) should all be part of a National Standards Accreditation Scheme.
Outlining the conclusion, the committee called for an urgent need to phase out the term shoplifting as it trivialises the crime. The Committee supports the plan to repeal the offence of “low-value shoplifting” and supports the creation of a standalone offence of assaulting a retail worker.
Improved reporting systems are required to enable retailers to report crime to the police quickly and easily, said the committee, recommending improving mechanisms for police and criminal justice systems to recognise and record when a crime has taken place in a retail setting.
The committee has also called on for "increased funding to community-based reoffending and rehabilitation initiatives" to help divert prolific drug and alcohol addicted offenders away from further offending.
Public awareness campaigns are needed to target the stolen goods market, stated the committee while expressing support for the introduction of regulations and best practice guidance for the use of facial recognition technology by private companies.
Welcoming the committee's findings and recommendation, ACS chief executive James Lowman said, “We strongly welcome the recommendations of the Committee which are sensible measures aimed at prioritising shop theft response both locally and nationally, as well as improving reporting rates. We know that millions of incidents of theft go unreported every year because retailers feel as though nothing will be done, which is a trend that we need to reverse or risk effectively decriminalising theft. Theft is a damaging crime, committed by organised groups that are stealing to order and take advantage of people struggling with the cost of living.
“We are looking forward to continuing working with the Home Office and Police and Crime Commissioners across the country to put in place the recommendations of the report and close the gap between reported crime and the reality of the situation in local shops.”
The Lords Committee has been considering the impact of shop theft on the retail sector since the end of the last parliament, hearing from different stakeholders involved in retail, academia and crime prevention on ways to improve reporting, reduce reoffending, and improve retailers’ confidence in the police.
ACS gave evidence to the Lords Committee in September of this year, sharing the experiences of members with reporting shop theft, the challenges of reporting crime, and the perceived lack of action from the police when thefts are reported to get repeat offenders off the streets.
In the Budget last week, the Chancellor announced that it was taking action to deal with the sharp rise in shop theft, providing additional funding to tackle the organised gang that target retailers.
One Stop has announced it’s 2024 Christmas campaign, giving customers a chance to win weekly prizes including a high-end tech bundle.
From Monday (4 November) until 31 December, customers can not only take part in One Stop’s Scratch to Win weekly advent online game, but also take advantage of the convenience retailer’s weekly deals.
One Stop’s Scratch to Win game will see prizes such as chocolate hampers, £100 Love to Shop vouchers, a Bose speaker, pizza ovens, alcohol hampers, a Merlin Gold pass and more, up for grabs.
All customers have to do is visit the One Stop website, where they will be directed to the Scratch to Win game page. They’ll simply need to use the coin to scratch off the week’s window and input their details to be entered into the prize draw! Customers can try their luck every Wednesday for the next nine weeks. Behind the window each week, customers will also be able to see the retailer’s must-have deal.
Customers can also try their hands at various festive feel-good recipes, read a variety blogs and learn about the retailer’s latest community highlights on One Stop’s website – bringing Christmas at One Stop altogether in one place.
One Stop added that it will be stocking all the Christmas sweet treats and dinner trimmings the customers will need. From pigs in blankets, carrots, sprouts, cabbage to parsnips, customers can get everything they need at their local One Stop store this festive season.
The convenience retailer has even put a festive touch on their lunchtime meal deal, with Christmas favourites including chicken, stuffing and cranberry sub and wrap.
Alongside the competition One Stop have some attractive weekly deals available throughout Christmas, from festive favourites including: Terry’s Chocolate Orange, Quality Street, Walkers, Hardys, Pringles, Strongbow, McVities, Cadbury, Madri, Celebrations and Coca-Cola.
Giving a mixed welcome to Tobacco and Vapes Bill introduced in the parliament today (5), trade association for the UK vaping industry Independent British Vape Trade Association (IBVTA) has highlighted the need to balance restricting access of vaping to young people with ensuring adults who smoke can access the most popular and effective tool for quitting.
The Bill introduced in Parliament today (5) comes after separate legislation that will ban single use vapes from June next year. A further announcement that liquid used in refillable vapes and prefilled pods will be subject to a duty of £2.20 per 10ml came in the Autumn Budget last week.
As well as banning the sale of tobacco products to anyone aged 15 or younger this year, the Tobacco and Vapes Bill carries over other elements of similar plans from the last Conservative government. The previous Bill ran out of time and fell before the general election.
This sits alongside a ban in the new Bill on vape advertising and sponsorship, as well as powers to restrict the flavours, display and packaging of all types of vapes, as well as other nicotine products.
Additional new measures from the Labour government include powers to extend the indoor smoking ban to specific outdoor spaces: with children’s playgrounds, outside schools and hospitals all being considered, subject to consultation. Wes Streeting is also considering including vaping within the smoking ban in some indoor spaces.
The Bill will also include powers to introduce a licensing scheme for retailers to sell tobacco, vape and nicotine products in England, Wales and Northern Ireland, and will introduce on the spot fines of £200 to retailers found to be selling these products to people underage.
Chair of the Independent British Vape Trade Association, Marcus Saxton, said, “There are things to be welcomed in this Bill, such as strengthened powers of enforcement against retailers who engage in illegal sales. However, there is also a danger that with so many legislative avenues being sought to reduce youth uptake of vaping, ‘regulatory overkill’ may hamper the future of vaping as the UK’s leading quit aid for adults.
“The IBVTA looks forward to working positively and progressively with the Government to ensure that vaping becomes less accessible and desirable to children, and to adults that would not otherwise be smoking. However, this can only be considered successful in the context of continuing the decline in adult smoking rates that has accompanied the growth of the UK’s vape sector.
“Excessive restrictions on the types of products that our members can provide may reduce the products’ appeal. Even worse, they may contribute to continued misperceptions about the harm of vaping relative to tobacco smoking. Specifically, the role of flavours in supporting adult smokers to a successful quit attempt is accepted and understood by most public health stakeholders, and we believe to have been fundamental to the succes of vaping in reducing smoking rates. Therefore, any reference to potential powers to restrict flavours is very worrying, as it threatens the government’s own goal of the UK becoming smoke free by 2030.
“It is vital that more smokers understand that switching to vaping is of much lower harm, and can help them to quit smoking for good.”
The Tobacco and Vapes Bill, which will cover all four UK nations and will see all young people born on or after January 1, 2009, unable to purchase any tobacco products, will be introduced to parliament today (5).
The world-leading Bill will include measures to create a smokefree generation, phasing-out the sale of tobacco products across the UK to anyone aged 15 or younger this year, breaking the cycle of addiction and disadvantage.
In addition, the government will be given powers to extend the indoor smoking ban to specific outdoor spaces: with children’s playgrounds, outside schools and hospitals all being considered, subject to consultation. However, the government abandoned plans for a ban on smoking outside pubs and cafes after concerns were raised about the impact on the hospitality industry.
"Unless we act to help people stay healthy, the rising tide of ill-health in our society threatens to overwhelm and bankrupt our NHS," the health minister Wes Streeting said in a statement. "This historic legislation will save thousands of lives."
This sits alongside a ban in the Bill on vape advertising and sponsorship, as well as powers to restrict the flavours, display and packaging of all types of vapes, as well as other nicotine products. The new UK Bill will give enforcement agencies, including Trading Standards Wales, additional powers to issue Fixed Penalty Notices for illegal sales of tobacco and vapes and other consumer nicotine products.
Proposals include restrictions to the advertising of vaping and nicotine products; banning vape vending machines and measures to reduce the appeal and availability of vapes by addressing vape flavours, packaging and where they can be displayed in shops to move them out of sight of children.
Disposable vapes are also due to be banned from 1 June 2025 under separate environmental legislation.
The previous Conservative government had announced similar measures to create the first smoke-free generation. However, those plans failed to become law before the general election in the summer when the party lost power. The new legislation ensures anyone aged 15 this year, or younger, will be banned from buying cigarettes, and aims to make vapes less appealing to children.
The government said smoking causes about 80,000 deaths a year and costs the economy 21.8 billion pounds a year in lost productivity and health and care costs - far outweighing tax receipts. Britain banned smoking in almost all enclosed public spaces, including bars and workplaces, in 2007.
Cancer Research UK said this led to an estimated 1.9 million fewer smokers, and research in the British Medical Journal estimated there were 1,200 fewer hospital admissions for heart attacks the following year.
Industry charity NewstrAid will be rounding off their 185th Birthday celebrations with their annual Carol Concert held at St Bride’s Church, Fleet Street on Monday 2 December, 6.45pm.
This festive event, which has been made possible thanks to support from more than twenty newspaper and magazine businesses, will include music from the St Bride’s choir and festive readings from industry colleagues.
We are so grateful to all the businesses who have sponsored this event and made it possible during our 185th Birthday year," said Neil Jagger, CEO for NewstrAid. "If it wasn’t for the support we have received from the Newspaper and Magazine industry throughout our history, the charity quite simply would not still be in existence.”
The carol concert is the last event to take place in celebration of NewstrAid’s anniversary with events during 2024, including a scavenger hunt, a special lunch for the charity’s volunteers and a Summer raffle. These celebrations have coincided with the charity having another exceptionally busy year with requests for support coming in at the same rate as they did in 2023, which was a record year for applications.
“St Bride’s church, with its long association with the newspaper trade, is a very fitting location for the final event of our 185th year. The money raised as a result of all our events continues to be as important as it was when the charity was founded nearly two centuries ago and we hope to see many friends and colleagues from the newspaper and magazine industry join us at St Bride’s to help us continue to support those from the trade who are facing hardship,” Jagger concluded