T4K3.news

HMRC names 98 restaurants for tax violations

98 restaurant businesses owe a total of £10.4 million in unpaid taxes, prompting HMRC's crackdown.

July 21, 2025 at 05:00 AM

HMRC cracks down on tax-avoiding restaurants and takeaways

HMRC is actively targeting restaurants in a bid to recover unpaid taxes amid rising scrutiny.

HMRC intensifies scrutiny of restaurants and takeaways

HMRC has announced a significant enforcement action against the restaurant industry, naming and shaming 98 businesses for unpaid taxes. These firms are reported to owe a total of £10.4 million in taxes, with HMRC imposing £9.2 million in penalties. As the government sets ambitious targets for increasing tax revenue, HMRC has ramped up its activities, focusing on compliance among restaurants and takeaways, which are seen as vulnerable to scrutiny. The hospitality sector has faced numerous challenges, especially after the pandemic, and critics argue that this crackdown comes at a difficult time.

Key Takeaways

✔️

98 restaurants publicly named for unpaid taxes

✔️

Total unpaid tax amounts to £10.4 million

✔️

HMRC imposes £9.2 million in penalties

✔️

Government sets ambitious targets for tax collection

✔️

Hospitality sector faces significant operational challenges

✔️

Growing scrutiny expected for individuals and companies

"HMRC has always treated restaurants and takeaways with a fair bit of suspicion."

Philip Kinzett-Evans discusses HMRC's historical scrutiny of the restaurant sector.

"The hospitality sector has lost nearly 70,000 jobs in the last three months."

Peter Davies highlights the job losses faced by restaurants recently.

"With the government wanting to raise tax revenues, ramping up compliance is one of the few levers left."

Abigail McGregor explains the strategic turn by the government to increase tax revenue without raising rates.

"We cannot afford to recruit for summer; the situation is worse than Covid."

Kate Nicholls voices concerns about the intense pressures facing the hospitality sector.

The aggressive enforcement strategy by HMRC is likely to have far-reaching implications for an already struggling hospitality sector. With many businesses reeling from the pandemic's impact, the move to publicly name offenders could increase tensions between HMRC and restaurant owners. As government ambitions for tax revenue rise, the hospitality industry must brace for even tighter regulations and scrutiny. This raises concerns not only about financial sustainability but also about the long-term viability of many small businesses in a challenging economic climate.

Highlights

Restaurants are easy targets for tax enforcement.
Tax scrutiny comes at a time of struggling recovery.
A HMRC crackdown is the last thing hospitality needs.
The hospitality sector is being taxed out of existence.

Heightened risk for the hospitality sector

The crackdown on unpaid taxes could further destabilize struggling restaurants already facing numerous challenges. As businesses navigate rising costs and post-pandemic recovery, this scrutiny may lead to more closures and job losses.

As enforcement intensifies, the fate of many restaurants remains uncertain in this harsh economic landscape.

🏷️

tax hospitality HMRC enforcement UK politics economy hospitality

Enjoyed this? Let your friends know!