HMRC has published a new Factsheet CC/FS68A which provides information on electronic sales suppression (ESS). It explains the powers HMRC can use to help it identify and tackle ESS. It also explains the penalties which may be levied if a person is in possession of an ESS tool.
More details on ESS and ESS tools here.
HMRC powers
Finance Act 2022, Schedule 14 allows HMRC to issue an information notice for ESS. This means HMRC can ask for certain information that applies to ESS. It allows the issue of a Notice to a ‘relevant person’ for a ‘relevant purpose’.
Relevant Person
A ‘relevant person’ is any person who HMRC think may be liable to a penalty for being involved in ESS.
Relevant purpose
A ‘relevant purpose’ is the reason HMRC is asking for information about ESS and ESS tools.
The law allows HMRC to do this in three situations. These are to help HMRC:
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decide whether a relevant person has made, supplied, promoted, or possesses an ESS tool and whether this person is liable to a penalty
- understand how the ESS tool works
- identify any other person who has made, supplied, promoted, or possesses the ESS tool.