The Ambrette restaurant is calling for a clamp down on the endemic tax evasion within the food service sector
Tax evasion is endemic among restaurateurs, hoteliers, publicans and café owners.
Many members of staff in this sector receive at least part of their wages in cash, with insufficient deductions for income tax or national insurance - which often facilitates benefit fraud.
Cash receipts are under declared with modern cash registers having a “back door” software function whose sole purpose is tax evasion.
HM Revenue & Collections should send undercover “mystery dinners” into restaurants to pay for meals with cash, then ask for restaurants to account for the payments at regular VAT inspections.
The Ambrette urges customers to pay for meals with debit and credit cards and for the Government to stamp out the widespread tax evasion.
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