Services to Restaurants
Brebners is a leading professional adviser to restaurants and restaurant groups.
Earlier this year Inland Revenue (now known as H M Revenue and Customs) reversed its previous policy and backed down on its attack on the operation of tronc payments.
Even better, the Revenue then went on to announce certain concessions.
- The Revenue now accept that where employers deduct expenses, commission etc from service charges collected and passed to the troncmaster , exemption from National Insurance contributions will not be lost .Previously the Revenue’s view was that exemption was lost on the whole tronc.
- The Revenue have also abandoned the insistence that National Insurance contributions would be payable on the whole of the tronc where any part went towards meeting the National Minimum Wage. It concedes that National Insurance contributions is only payable on the element paid towards the National Minimum Wage
While these concessions are welcomed it is expected that the Revenue will continue to target restaurants, particularly as regards the whole issue of service charges, tipping generally and the strict operation of a tronc system. Similarly with the National Minimum Wage, as NMW is applied to wages passing through the payroll. There now also remains the matter of those restaurants and troncs that have been incorrectly treated in the past, given these Revenue concessions.
As leading professional advisers to restaurants and restaurant groups Brebners is ideally experienced and qualified in helping your restaurant business with the above and the ever continuing challenges posed to the industry.
Please call Simon Cryer or Raef Gregory for a free 2 hour consultation.
