HMRC- TURNING A BLIND EYE TO MONEY LAUNDERING?

Walk down almost any UK high street today and you’ll see them; barber shops, vape shops, sweet shops, mini markets, the list is growing all the time.  

Some appear busy and successful. Others seem to have remarkably few customers, yet somehow remain open, paying rent, rates, wages and utilities… Or are they?

So where is all the money coming from?

Before anyone jumps to conclusions, I’m not suggesting every barber, vape shop or convenience store is doing anything wrong. The vast majority are legitimate businesses trying to make a living. But we now know there IS a problem. A big problem.

The Government itself announced a £30 million crackdown in 2026 targeting rogue high-street businesses suspected of involvement in money laundering, tax evasion, illegal working and organised crime. Which raises an uncomfortable question:

WHERE HAVE THEY BEEN?

Anyone who runs a legitimate business knows how quickly HMRC can find you when you owe them money, miss a VAT payment, get PAYE wrong, fall behind with Corporation Tax, and you’ll soon hear from them.

But why does the system sometimes appear considerably less effective when dealing with people who deliberately operate outside it?

And here’s something that surprised me: It currently costs just £100 to incorporate a company online in the UK, and an online application to have a company voluntarily struck off is only £13, making it so easy to open a business then close it.  

That doesn’t mean someone can legally pay £13 and simply walk away from their debts, it’s not that simple for most, but it is if they don’t have residency or long-standing roots in the UK.

Meanwhile, legitimate businesses account for virtually every pound collected for the Government, VAT, PAYE and Corporation Tax (if you are lucky to make any profit) not to mention taking people off benefits and employ them legitimately. We also have to keep up to date and accurate records or we get hounded. So, here’s my problem:

Where HMRC vigorously pursues the people and businesses who are already registered, visible and relatively easy to find, but they find it harder to tackle those who deliberately attempting to stay outside the system?… Is it laziness or just cowardice on their part?

I don’t believe it would be fair to say HMRC supports money laundering, but I do think taxpayers are entitled to ask the question whether they and the other enforcement agencies have been doing enough to prevent it, because every pound deliberately evaded or laundered through the legitimate economy ultimately hurts those of us who actually play by the rules.

The Government’s new crackdown is welcome, but perhaps the biggest question is:

Why was such a crackdown necessary in the first place, and how did we allow the problem to become so widespread?

Is it because HMRC are also working as a two-tier system. just like our current police force do?