VAT squad catchestax-dodging restaurants

VAT investigation officers will have uncovered twice as many tax-dodging restaurants and take-aways in eastern England during the financial year 1999-2000 as they did in the previous 12 months.

By 1 April the officers from Customs and Excise and the Inland Revenue, known as the Eastern England Joint Shadow Economy team, will have added 270 businesses to the VAT register.

The team covers Derby, Nottingham, Sheffield, Lincoln, Grimsby and Doncaster.

Approximately one-third of the 270 businesses will be restaurants or take-aways.

Already this year 62 catering establishments, with debts of £750,000, have been uncovered.

Last year 140 businesses were added to the register. Again, one-third of them were in the catering industry (Caterer, 11 February 1999, page 18).

John Wilcox, Eastern England Joint Shadow Economy team manager, estimates there are a further 500 tax-dodging restaurants and take-aways to target, with a combined annual turnover of £40m.