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CH259150 - How to do a compliance check: using inspection powers: cashing up: limitations on powers

Where the inspection is reasonably required, see CH21620, for the purpose of checking a person’s tax position, see CH21540, you may enter that person’s business premises and

  • ask questions about the cashing up procedure, and
  • remain on the premises to observe the cashing up procedure, including the recording of the Daily Gross Takings (DGT).

You do not have the power to require a customer to cash up at any time during your inspection but you can inform the customer that

  • you wish to observe the cashing up process and,

where this is reasonable and proportionate (see CH21360)

  • you will remain on the premises until it has been completed.

If you are carrying out an inspection at the end of the trading period and the customer indicates that they will not be cashing up you should refer them to VAT Notice 727 Retail Schemes and the need to record their DGT.

You must not disrupt the customer’s business activities and you cannot require them to cash up at any time during your inspection.

You cannot use schedule 36 powers to inspect cash unless the cash is ’trading stock‘, for example if the customer is a currency exchanger or dealer in coins.