HM Revenue & Customs (HMRC) has issued a plea to the public to report businesses they believe may be breaking the law, including vape shops, barbers, sweet stores and convenience shops. The tax authority has upgraded its online fraud reporting service, making it easier for people to pass on information about activity that does not look right.
Crackdown on high street crime
HMRC is preparing to carry out more than 30,000 interventions on the high street during 2026-27 in a drive against tax fraud and organised criminal activity. The crackdown will target businesses suspected of being fronts for money laundering, tax crime and the sale of illicit goods.
People using the reporting service will be asked for specific, factual details about what they have seen. This can include suspicious behaviour, activity, locations and timings linked to suspected money laundering or other HMRC-related criminal activity.
Anonymous reporting and enforcement
Reports can be made anonymously. The information will then be used by HMRC enforcement teams to build intelligence, identify patterns and assess risks before deciding where to target compliance and enforcement action.
Chancellor John Healey said: “Too many high streets have been blighted by dodgy shops that harm local communities and undercuts honest businesses. If you see something that doesn’t look right, like suspected tax fraud or money laundering, use HMRC’s fraud reporting service and help protect our high streets.”
Targeted activities and joint operations
HMRC has already warned that it will step up action against businesses involved in illegal activity. Its programme for 2026-27 includes unannounced visits, tax and organised crime investigations, seizures and warning letters. Officials will target a wide range of activity, including businesses involved in money laundering, National Minimum Wage breaches and the sale of illicit tobacco and vapes. HMRC will also target rogue directors who repeatedly shut down businesses only to reopen elsewhere.
Another focus will be so-called till fraud, where electronic tools are used to manipulate sales records, suppress takings or help launder money. The crackdown comes amid growing concern about criminal networks exploiting legitimate-looking businesses on Britain's high streets.
New unit and recent raids
HMRC says it will work with other agencies to go after not only the businesses involved but also the people controlling them and those who enable their activities. A new High Street Organised Crime Unit, backed by £30 million, was launched by the Home Office in May. It brings together HMRC, Trading Standards, police forces and the National Crime Agency to tackle organised criminal activity on the high street.
HMRC has previously carried out joint raids on high street businesses. In June, officers made unannounced visits to six souvenir shops in central London alongside Home Office Immigration Enforcement, Westminster Council Trading Standards and the Metropolitan Police. The operation resulted in till data being downloaded from all six premises, three arrests over immigration offences and a £40,000 civil penalty for a business employing an illegal worker. Trading Standards also seized goods worth £5,433, including disposable vapes, counterfeit bags and unsafe travel adapters.
HMRC says the public should provide facts rather than speculation when using its reporting service. The information can then help investigators build a picture of suspicious activity and decide where action is needed. The upgraded service is available through GOV.UK's Report Tax Fraud facility.
