TaxCorporate TaxTaxman to take a bite out of tipping

Taxman to take a bite out of tipping

Restaurant owners that have 'abused' the system for administering tips could face a bill of millions in unpaid tax as the Inland Revenue gears up to publish its report on the industry.

Link: Revenue gunning for waiters’ tips

After more than two years of investigating the restaurant industry, the tax man will shortly issue its findings that could lead to many restaurants being fined for non-payment of National Insurance contributions.

The review has included looking at the tronc systems at restaurants where diners leave tips on credit cards or cash that is divided up among the staff. If the tronc system is overseen by someone other than management or owners, then the monies are exempt from NI contributions.

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