Business News - July
Tips Not Included In National Minimum Wage
Lincolnshire based accountants Moore Thompson are advising employers in the retail and hospitality sectors to examine how they deal with tips on behalf of employees. HMRC recently won a case against a restaurant and nightclub that used tips received through a ‘tronc’ payment as part of the National Minimum Wage (NMW).
A ‘tronc’ is an independent distribution system that allows tips, gratuities and service charges that are paid directly to the establishment be allocated to the various members of staff. The ‘tronc’ scheme bypasses the employer, so that any monies paid to an employee are not seen as being payments from them. It is on these grounds that HMRC argued that the tips should not be seen as contributory to the NMW.
Mark Hildred comments: “HMRC are committed to ensuring every worker in the country gets a fair and legitimate wage, with hefty penalties for non-compliance with National Minimum Wage legislation. Employers across all sectors should remember this, and ensure that they adhere to the regulations.”
For more information contact Moore Thompson on 01775 711333
