This is the next major sector that HMRC have stated they are going to target for tax enquiries.

Areas they are likely to examine include:-

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Recording of cash sales and purchases

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Gross profit rate – fluctuations from previous years

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Tips – how are they recorded; allocated amongst staff; and are they

being taxed

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Chefs – are they being treated correctly as employees, rather than

self-employed

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Electricity and gas costs – of these are significantly increasing

HMRC would expect to see a corresponding increase in takings

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Costs incurred on a packaging, cartons, containers etc – again a

large increase in these costs would normally be associated with a large

increase in sales