HM Revenue and Customs (HMRC) has named and shamed more than 150 individuals and businesses for deliberately defaulting on tax, issuing civil penalties in each case. Among those identified are high street businesses such as takeaways, convenience stores, and vape shops that knowingly failed to pay taxes. The list covers civil penalties only, not criminal convictions, and remains published for 12 months. Cases involve businesses that did not pay at least £25,000 in tax or failed to make a full disclosure when HMRC began its investigation.
Liverpool Firms Hit with Major Penalties
Two Liverpool-based businesses were found to have defaulted on a total of approximately £500,000. GPM Trading Services Ltd, formerly known as GPM Builders Ltd, registered on Woodhall Road in Liverpool 13, defaulted on £29,556.87 in taxes for the periods September to October 2024 and December 2024 to January 2025. The building services and maintenance firm was charged £24,28.15 in penalties.
AJR Contractors Ltd, a building company registered on Allerford Road in Liverpool 12, defaulted on £470,201 in taxes for the period August to November 2024 and was charged £329,140.70 in penalties.
HMRC Director Comments on Unfair Competition
Kevin Hubbard, HMRC's Director of Small Business and Individuals, said: "Too many high streets have businesses that are undercutting their honest neighbours by failing to pay the tax they owe. That is unfair to compliant businesses and to the communities they serve, and we are determined to tackle it." He added that the list includes takeaways, convenience stores, and other high street businesses from across the UK, highlighting HMRC's nationwide efforts to combat non-compliance.
Broader Enforcement Measures
Publication of the deliberate defaulters list is one of many measures HMRC is using to tackle non-compliance on high streets. HMRC is stepping up enforcement activity, planning more than 30,000 interventions during 2026 to 2027 to tackle tax fraud and criminal activity. This includes deploying more staff to visit high street premises, targeting tax risks and illegal activities associated with cash-intensive businesses.
HMRC is also targeting businesses involved in money laundering, National Minimum Wage breaches, sale of illicit goods like vapes and tobacco, and rogue directors who repeatedly shut businesses and reopen elsewhere. Officials continue to investigate till fraud by identifying providers and end-users of electronic tools used to manipulate sales records or launder money.
Government Collaboration
In May 2026, the Home Office launched a new High Street Organised Crime Unit with £30 million in funding, bringing together HMRC, other government departments, Trading Standards, policing partners, and the National Crime Agency. At the 2025 Budget, the Chancellor announced a new team of 350 criminal investigators for HMRC to tackle evasion by small businesses. HMRC confirmed investigators have been recruited, with around half focused on disrupting 'harmful high street businesses' and the people behind them.
