Electronic sales suppression is using software, a device or till settings to hide or reduce recorded sales so that less tax is paid. Since 24 February 2022, Schedule 14 to the Finance Act 2022 has allowed HMRC to charge penalties of up to £50,000 for making, supplying or promoting a suppression tool, and up to £1,000 plus up to £75 a day for possessing one. These penalties sit on top of any tax, interest and inaccuracy penalties.

What counts as a suppression tool?

A suppression tool is software, a device or a programme that can falsify, hide or delete records of sales, or that changes how a till or point of sale system records transactions. HMRC’s factsheet CC/FS68A, published in August 2026, says businesses do this “to reduce their turnover so they pay less tax”, including by configuring a till or point of sale system.

What are the penalties?

  • Making, supplying or promoting a suppression tool: up to £50,000 (Schedule 14, paragraph 5).
  • Possessing a suppression tool: up to £1,000, then up to £75 a day if it continues (paragraph 6).

Where sales have been hidden, the underpaid VAT, Income Tax or Corporation Tax is also due, with interest and inaccuracy penalties, which for deliberate and concealed behaviour can reach 100% of the tax.

Which businesses should check their systems?

Any business that takes payments through a till or point of sale system, especially those with a high volume of cash or card transactions, such as hospitality and retail. If you inherited a system with a previous owner, or a supplier offered a feature to delete or edit sales, check what it does. See tax investigation insurance for hospitality businesses.

What should I do if I find a problem?

Take advice straight away. Removing the tool and making a full disclosure of any underdeclared sales before HMRC contacts you gives the best chance of lower penalties. Where HMRC suspects fraud it may use its Code of Practice 9 process.

Does insurance cover this?

No insurance pays penalties or tax, and tax investigation insurance normally excludes cases involving deliberate behaviour or fraud. See what tax investigation insurance does not cover. For honest businesses, cover pays the cost of answering HMRC’s questions about till records and takings.

Tax investigation insurance pays your accountant’s fees if HMRC opens a check after your cover starts. Solar Protect cover pays up to £100,000 with no excess. It never pays tax, interest or penalties. Read how our cover works or get a quote today.

Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 7 October 2026. Sources: Finance Act 2022 Schedule 14; HMRC Compliance Handbook CH194240; HMRC factsheet CC/FS68A. This guide is general information, not personalised tax advice.