The taxman is targeting the sex trade in London as part of a new UK-wide taskforce launched today (December 4).
The rise of the internet has caused a drastic increase in online escort agencies and HM Revenue and Customs ( HMRC ) estimated in 2010 that the adult entertainment industry could be worth up to £5 billion.
Now adult club owners and entertainers who do not pay their taxes are being targeted by the HMRC taskforce.
It will look at the traders and entertainers, some of whom earn thousands of pounds a day, working in the industry, and aim to catch those who are not HMRC registered for VAT , Income Tax and PAYE.
Jim Stevenson, Head of HMRC Taskforces, said: “Large numbers of people working in this industry are paying the tax they owe and they don’t have anything to worry about. The people being targeted by this taskforce have no intention of playing by the rules, and we won’t tolerate this.
“No industry is safe where tax evasion is concerned – we won’t stop tracking people down and taking back what they owe.”
More than 140 taskforces have been launched since 2011 collecting more than £404 million that goes towards funding vital public services. This includes £109 million brought in during the first six months of this financial year.
To report tax dodgers call the HMRC Customs Hotline on 0800 59 5000.