Three people have been arrested in a series of immigration and tax avoidance raids on central London souvenir shops.
HM Revenue and Customs (HMRC) and Home Office staff made surprise visits to six Westminster stores that stock royal family and UK-themed gifts last week.
A £40,000 fine was issued to one business for employing an illegal worker, while three arrests were made by Home Office officers for immigration-related offences.
Trading Standards seized £5,433 worth of goods, including 289 illegal disposable vapes, 173 squishy toys, counterfeit bags, hats, scarves and unsafe travel adapters.
They also downloaded till data to compare with tax compliance forms.
Dan Tomlinson, Exchequer Secretary to the Treasury, said: “HMRC is stepping up its action to go after illegal activity on our high streets. Owners of dodgy shops that are evading tax: we are coming for you.
“Too many high streets have been blighted by illegal activity that harms local communities and undercut honest businesses, and we’re determined to fix this.
“We’re increasing our action across the UK to target the criminals using shops as a front for tax evasion, money laundering and fraud.
“This is a sustained, nationwide effort – and HMRC and its partners will use every power available to dismantle these criminal networks.”
It comes as the Home Office launched a new £30 million High Street Organised Crime Unit, which aims to bring HMRC together with other government departments, including Trading Standards, police and the National Crime Agency, to dismantle “criminal networks who undercut the honest businesses”.
Caroline Sargent, Westminster Council's lead on enforcement, said: “This operation was a perfect example of what can be achieved when central and local Government work together to clean up the high street.
"As a local authority we seize large amounts of counterfeit goods - more than £330,000 in the last year alone - but HMRC involvement on issues like tax fraud or money laundering takes those efforts to another level.
“The shell companies behind candy stores and vape shops are notoriously difficult to unpick and the involvement of HMRC is hugely welcome. Likewise, we know these shops are sometimes staffed by people with no right to work in the UK, and again central Government takes the lead here.
“We want the West End and our high streets to be places with attractive shops and restaurants. We are going to be ramping up these operations in the coming months so our high streets are not overrun with tat.”
