Free legal advice launched to give restaurateurs guidance on distributing tips

26th July 2011, 9:00am

Fourth Hospitality is paving the way for a better understanding of how to fairly and legally get tips and service charges to employees with a free legal advice session.

It is a difficult issue: not only do employers have to ensure tips are distributed fairly among the waiters and waitresses who earn them, they must also do this according to the varied and complex tax and National Insurance regulations.

With HM Revenue & Customs re-launching Operation Gourmet to tackle the problem of tax evasion, avoidance and fraud in restaurants, the need for compliance is higher than ever.

Initially launched nearly a decade ago, Operation Gourmet was created to deal with non-compliance surrounding National Insurance Contributions and tax evasion through troncs in the restaurant sector.

It targets those businesses that do not distribute tips fairly or use them to make up salaries, which in turn allows them to dodge tax and NI payments. The focus will be on London sites initially, with those in the rest of the UK coming under scrutiny in future.

Paul Watson, Customer Success Manager at Fourth Hospitality, explained more: "There are many rules surrounding the payment of service charges and tips, whether using troncs or not, and we know it can be confusing," says

"That is why we are holding a free legal advice session so restaurateurs can ensure they are playing by the rules and giving every staff member what is owed to them, while also paying the right amount of tax and National Insurance."

Run in association with forward-thinking London law firm Candey LLP, the afternoon event on September 14th will give employers the chance to find out more about what they should, and should not be doing with employee tips and service charges.

The roundtable discussion session will help those struggling to understand the rules get a better grip on the law with the help of Candey's expert lawyers, and learn from the best practice workings, and potential mistakes, of fellow employers.

It will cover paying tips, whether in cash directly to staff or through troncs, and how the two options affect what employers must do with regards to tax and NICs, and also allow restaurateurs the chance to clear up any grey areas and ask questions relating to their specific set-up.

"Getting specialist advice is the best way to ensure you are adhering to the law and keeping things fair for all employees," Paul continued.

"This session will be invaluable for all restaurant owners as it will prepare them for any HMRC visit and give them the confidence to tackle any questions regarding payments of tips.

"It may even be that some businesses are owed a NIC refund, so it is well worth attending and getting on top of this difficult issue.

"Whatever the situation, expert help allows employers to get on with driving their business forward, without having to worry about sorting out payroll problems."

The free advice session on paying tips takes place on Wednesday, 14th September at 5pm at CANDEY LLP, 8 Stone Buildings, Lincoln's Inn, London WC2A 3TA. To book a place, contact success@fourthhospitality.com

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• 03 Jun 2010 - FOURTH HOSPITALITY EXPANDS WITH STAR LOGIC ACQUISITION
• 05 Nov 2009 - Fourth Hospitality takes top honours at 2009 Pay Awards
• 25 Sep 2009 - Fourth Hospitality named in Sunday Times Microsoft Tech Track 100
• 29 Jan 2008 - FOURTH HOSPITALITY ACQUIRES ALTERNATIVE BUSINESS SOLUTIONS

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