New HMRC Till-Software Standards: What Retail and Hospitality Businesses Need to Know
HM Revenue & Customs is considering new mandatory standards for electronic point-of-sale systems used by UK businesses.
The proposals could affect shops, restaurants, takeaways, cafés, pubs, salons and other businesses that use electronic or mobile tills to record sales. HMRC’s consultation closes on 18 August 2026.
It is important to note that these proposals are still under consultation. No new software standard has been introduced yet.
Why is HMRC proposing these changes?
HMRC wants to tackle “electronic sales suppression”, sometimes called till fraud. This happens when sales records are deliberately deleted, reduced or altered to understate a business’s turnover and tax liability.
HMRC believes stronger technical controls could make sales records more reliable and harder to manipulate.
The government’s proposals may include:
A complete and unalterable record of every transaction and adjustment
Encrypted transaction logs
A standard format for storing sales data
Additional information on receipts and till reports
Registration or certification of EPOS and MPOS systems
New compliance checks for retail businesses
Greater responsibility for till-software providers to protect their systems
HMRC has suggested that compliant systems could use the international Standard Audit File for Tax, known as SAF-T, to store sales information in a consistent format.
Which businesses could be affected?
The proposals are particularly relevant to businesses using EPOS or MPOS systems, including:
Retail shops and convenience stores
Restaurants, cafés and takeaways
Pubs and hospitality businesses
Hairdressers, barbers and beauty salons
Market traders and mobile sellers
Any business using a digital till, card terminal or integrated sales system
Software developers, resellers, accountants and tax advisers may also be affected.
What could this mean in practice?
If mandatory standards are introduced, some businesses may need to update or replace their existing till software.
Businesses could also be required to retain more detailed transaction records. This may include information about refunds, cancelled sales, discounts, corrections and other adjustments.
For accountants and bookkeepers, access to more consistent sales data could make bookkeeping and VAT reporting easier. It could also allow HMRC to examine individual transactions more efficiently during a compliance check.
However, the changes could create additional costs for small businesses, particularly where existing tills cannot be updated.
HMRC says it would prefer businesses to update their current systems instead of replacing them completely, where possible. No implementation date has been decided, and the proposals may be introduced gradually.
What should businesses do now?
There is no immediate requirement to buy a new till or change software. However, businesses should start reviewing their current arrangements.
Consider taking the following steps:
Ask your till provider whether the system keeps a complete record of transactions and adjustments.
Confirm that sales data can be exported and retained securely.
Check that refunds, cancellations and corrections have a clear audit trail.
Make sure sales recorded by the till agree with bookkeeping records, VAT returns and bank deposits.
Avoid entering into a long-term software contract without checking whether future HMRC standards can be supported.
Speak to your accountant before changing your sales-recording process.
Businesses and advisers can also respond to HMRC’s consultation before 18 August 2026.
How Tax Hub Solutions can help
Tax Hub Solutions can help retail and hospitality businesses review their till records, bookkeeping systems and VAT processes.
We can also help identify differences between till reports, bank receipts and accounting records before they become a problem during an HMRC enquiry.
If you are concerned about whether your current system provides a reliable audit trail, contact us for practical advice.
Tax Hub Solutions Ltd
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Website: taxhubsolutions.co.uk
Email: admin@taxhubsolutions.co.uk
Telephone: 07702 658602
Read the full Electronic Sales Suppression — Introduction of software standards in EPOS/MPOS systems - GOV.UK
This article is for general information only and does not constitute tax or legal advice. The proposals discussed are under consultation and may change before any final rules are introduced.