Rumours that the Inland Revenue might declare an amnesty for restaurants over improperly run tronc schemes have been quashed by industry experts and the British Hospitality Association (BHA).
Representatives from the BHA met up with Inland Revenue policy-makers last week in an attempt to reach a compromise over the tronc crackdown, launched in April. A request from the BHA to the Inland Revenue to halt the investigation while rules were agreed upon was turned down, however, leaving little hope that an amnesty will be declared.
The meeting was set up to clarify the rules surrounding the tronc, which are said to have been unclear in the past. More than 300 restaurants are being investigated in London over improperly run tronc schemes. Restaurants found not complying with the Inland Revenue rules have been given a bill of six years backdated National Insurance contributions, plus interest and penalties.
BHA deputy chief executive Martin Couchman said the BHA hoped to lay down clearer guidelines on tronc schemes and reach a compromise for the many restaurants presented with crippling bills. The BHA plans to meet Inland Revenue representatives again in November.
Couchman said: "We don't know if this meeting will change anything but it's an ongoing situation. We have asked the Revenue if they can stop the whole process but they are reluctant to do so. I don't think an amnesty is on the cards."
Tronc expert Steve Wright, a solicitor for Wheawill & Sudworth, said he thought it was extremely unlikely that the Inland Revenue would agree to an amnesty. "I'm sure the BHA would love to get an amnesty but I don't think it's likely. It wouldn't be fair on the vast majority of restaurants who have been playing it by the book."
Source: Caterer & Hotelkeeper magazine, 23 - 29 October 2003