Revenue U-turn on waiter tips

Revenue U-turn on waiter tips

Restaurant staff will be able to use troncs to top up wage without paying NICs

A misinterpretation of the law on taxing staff tips means that HM Revenue
& Customs will have to repay millions of pounds in fines.

The tax body has admitted its crackdown on the use of staff-run tips systems,
called troncs, to top up employers salaries to the national minimum wage without
paying national insurance contributions on the tips, was mistaken.

The practice had been banned last year but is now likely to be revived. It is
thought HMRC’s u-turn came after the collapse of the multi-million pound claim
against restaurant group Conran, according to The Daily Telegraph.

Related Articles

Supreme Court rules against Pimlico Plumbers in landmark employment case

Legal Supreme Court rules against Pimlico Plumbers in landmark employment case

1m Alia Shoaib, Reporter
Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

Personal Tax Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

3m Alia Shoaib, Reporter
Rent-a-room relief – the survey says…

Personal Tax Rent-a-room relief – the survey says…

4m Helen Thornley, ATT Technical Officer
What should the OTS prioritise in its review of inheritance tax?

Personal Tax What should the OTS prioritise in its review of inheritance tax?

6m Alia Shoaib, Reporter
LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

7m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

8m Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

9m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

9m Emma Rawson, ATT Technical Officer