HMRC in tax crackdown on restaurant owners reports BBC

  • Anil Kanda
  • 19 Feb, 2013

They recently reported “Tax inspectors are to investigate restaurants in London and other parts of the UK to hunt down tax dodgers in the food trade.

HM Revenue & Customs (HMRC) is setting up a series of special units to track down tax evaders.

The restaurant team will start in the capital before moving onto food outlets in Scotland and the North West.

The move follows a similar recent campaign to persuade plumbers to come clean about their tax affairs.

Mike Eland of HMRC said the drive was part of the government’s plan to raise more tax by cutting down on tax evasion.

“These task forces are a new approach which uses HMRC’s resources to identify and tackle rule-breakers and evaders swiftly and effectively,” he said.

“Only those who choose to break the rules, or deliberately evade the tax they should be paying, will be targeted.”

“Troncmaster”

Restaurant owners have long been of interest to tax inspectors and are regarded as a high-risk for tax evasion. The Revenue would be interested in the earnings of staff, not just the owners.

A restaurant must have a dedicated troncmaster responsible for sharing out tips amongst the staff which includes waiters, maître d’s and cooking staff and also includes PAYE administration for tips which are deemed to be taxable supplementary remuneration or pay.

HMRC comments

HMRC says it will set up nine other similar task forces during the current tax year, with more to come next year.”