As the owner or manager of a cash sales business, how often do you check the records on your cash register?
Is it possible there is an excessive number of ‘no sales’ being rung up? This indicates that sales are being suppressed and therefore you – and your business – are losing money.
In January, HMRC visited a shop premises in London to carry out a routine VAT inspection. They advised the shop keeper to use till rolls so he could record his sales and HMRC could assess his business accurately.
About a month later, HMRC re-visited the shop and found a larger than usual number of ‘no sale’ records on the till rolls, indicating that the actual value of sales in the shop was being concealed.
There are of course some instances where it’s perfectly reasonable to record ‘no sale’ on a cash register when a genuine mistake has been made. However, this particular shop was suppressing sales amounting to nearly £500 each day.
Always make sure you use till rolls or a similar method of recording your sales, and monitor them. If you feel the ‘no sale’ button has been used too often, take action. It is up to you to decided how often is too often, but it may be necessary to re-train staff to ensure this button is not pressed more than necessary.
If you are worried about this situation in your business please contact Vincent & Co as we may be able to advise you.