Taxman to repay millions in wrong tips taxes
HM Revenue & Customs yesterday said it will have to refund millions in tax fines after it misinterpreted the law in its crackdown on restaurants that use tips to avoid tax on staff salaries. The move, which came as a surprise to the hospitality industry, means that restaurant owners can use staff-run tips systems to top up waiters' salaries to the national minimum wage without paying national insurance contributions on the tips - a practice that was banned last year. – Daily Telegraph, 18 February
Hilton to return £3.8b to investors after hotel sale
Hilton is expected to announce the return of about £3.8b to investors next Thursday when it completes the sale of its hotels business and outlines its strategy as a group that is devoted purely to gambling. – Daily Telegraph, 18 February
Qhotels makes its first property buy
QHotels, the four-star hotel operator backed by Alchemy Partners, has acquired its first Scottish hotel, the Westerwood Hotel and golf course in Cumbernauld, for a rumoured £15m. – The Times, 18 February
Officials may tail Scottish smoke ban flouters
Teams of council enforcers are to be given the power to trail people who flaunt the ban on smoking in public places, including following them to their cars and homes. – Sunday Times (Scottish edition), 19 February
Hospitality wage falling through migrant workers
A large scale influx of migrant workers has driven down pay in the hotel and restaurant sector – but savings on wage bills have not been passed on to the customer. Basic pay for hotel workers fell by about 2.5% last year according to the Bank of England, while overtime earnings plunged 20%. – Mail on Sunday, 19 February
Dual stock listing for KHI hotel group
Alwaleed Bin Talal, the Saudi billionaire who bought a stake in the Savoy hotel last year, is floating jointly on the London and Dubai stock markets Kingdom Hotel Investments (KHI), which owns stakes in 26 hotels, mainly in the Middle East and Africa. It also has the George V in Paris in its portfolio. – Sunday Times, 19 February
Thin times for Fat Duck
Heston Blumenthal’s three Michelin-starred Fat Duck restaurant at Bray has gone into the red. Accounts show the Fat Duck made a £78,229 loss in the year to March 2005, against a profit of £35,783 the year before. – Mail on Sunday, 19 February
Elior take on Irish airport contract
Elior, the French catering company, has been nominated as the preferred bidder for the catering contract at Shannon airport, but only if the local management can agree on a deal with the 90 workers who currently work at the site’s flight kitchen. The Shannon flight kitchen is one of the few airport-owned catering units in western Europe. – Sunday Times (Irish edition), 19 February