Restaurants that operate a pooled tipping scheme could be the target of an Inland Revenue purge to find out if tax and NIC is being fiddled.
Under this type of scheme, known in the trade as the ‘Tronc’ scheme, tips are not liable for NICs, as long as restaurant owners comply with a set of Inland Revenue rules.
However, problems have arisen because restaurant owners have found the rules to be extremely complicated and confusing.
The investigation will have serious implications for some companies who may be in for backdated payments over the last six years.
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