Revenue slammed over swoop tactics

Staff interrogations and clumsy till audits are alienating licensees, say trade accountants

Licensees across the country are fuming at the heavy-handed tactics of Revenue & Customs officials, who are targeting the trade in a series of unannounced pub swoops.

Licensees are particularly incensed at the way Customs inspectors march in to their premises, demanding to examine tills immediately, and interrogate bar staff about work-shift patterns and other financial matters.

Mike Brierley, head of Grimsby-based accountants MJ&A Accountants, told the Morning Advertiser: "Many of my clients have been receiving visits from inspectors asking very detailed questions of staff who are just not in a position to know the full facts.

"One staff member was questioned for over three hours.

"They're clearly looking for off-record payments, but the way they're handling this exercise is often clumsy and technically very poor, particularly with VAT returns and year-ends. We have three disputes with them at the moment over issues we think they've got completely wrong.

"I know they have a job to do, but they should be working more closely with the trade, rather than treating us like aliens."

Another accountant who approached the MA also criticised inspectors' technical knowledge.

"Often they have no idea how to examine tills. We had one in a client's pub the other day who was on the phone to his head office for over an hour, trying to get instructions on what to do. And they don't realise that if staff are being trained in using the till, transactions will be registered that are not real purchases."

One licensee, who did not wish to be named, told the MA that he had been caught out by a Customs official who enquired casually if he ever drank from his own bar.

"Stupidly and without thinking, I told him I probably have 10 pints a week while I'm working. Next thing I knew, I had a bill for six years' back duty amounting to £900."

Other licensees have complained about inspectors' failure to identify themselves properly. One told the MA: "I didn't believe this guy was an inspector and asked him to leave. Later I got a phone call later saying I'd be fined up to £2,500 if I did that again."

HM Revenue & Customs began targeting pubs over a year ago but claimed visits were "to help licensees understand and simplify their tax obligations."

Visits may have been stepped up out of concern over possible money-laundering and terrorism links.

A senior police officer told the MA: "Money laundering is a big concern - pubs are among the top three establishments targeted, alongside saunas and sunbed shops."

'Tell them to come back Later'

Martin Roslyn, Pub Accounting Co.

"Our advice to licensees is to tell inspectors politely that you are busy and ask them to come back at a pre-arranged time when an accountant can be here. A lot of the paperwork is kept off site anyway."

Richard Miles, Milestone Accountants

"It can be daunting for the licensee, but in essence they must say 'Talk to my accountant'. The benefit of what we do is that we can provide a lot more information and data, so it makes sense to talk to us. I say: 'Don't start answering questions - just give them our phone number.'

"If you start answering questions, it could be a bit like

being in the dock in court and having your words spun by silver-tongued professionals. Licensees won't necessarily understand why certain questions are being asked, but a professional accountant will."