Recent reports indicate that HMRC staff are causing problems in some cases where they inspect records from computerised tills.

 

Some computerised tills can be adjusted to show incorrect readings of cash takings or VAT. HMRC inspectors are therefore interested in making sure that tills have not been set up to suppress takings or output VAT. To this end, they have trained some of their inspectors in how to extract information from computerised tills. Normally this takes the form of a request for a ‘full audit trail’ from the till (which is then compared with the disclosed takings and VAT). If the staff member does not know how to produce this, the HMRC officer may offer to do it for them. If the staff member agrees, they have in effect invited the HMRC officer to use the till.

 

Whilst a taxpayer is obliged under the law to assist HMRC officers to obtain reasonable information necessary for their enquiries, it is arguable that HMRC officers do not have the right to operate the till unless invited to do so by the trader or a member of their staff. If invited to do so, they cannot be accused of exceeding their rights.

 

Unfortunately, the inspectors do not always know how to restore the till to its proper function after their inspection, which has reportedly caused problems for some traders.