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HM Revenue & Customs is going to be targeting restaurants, initially in London, before moving on to Scotland and the North West. Following the success of the recent Plumbers Tax Safe Plan, which invited plumbers, heating engineers and gas fitters to come forward and declare earnings, HMRC is now moving on to restaurant owners and their staff.

The campaign is part of a plan by the government to reduce tax evasion and bring in more tax, according to Mike Eland speaking on behalf of HMRC. The new task force will use their resources to identify those who are evading tax, and then investigate. Restaurant staff will also be under close scrutiny, as well as the owners.

Restaurants have a troncmaster, who is responsible for the tips that the staff receive. The troncmaster shares the tips between the kitchen staff, waiting staff and the restaurant staff. The same person is also responsible for the administration of Pay As You Earn on the tips, as they are liable, although most individuals will declare their own tips on a self-assessment tax return or through their tax code.

There will be nine more task forces set up during the 2011-12 tax year, with more to be set up in 2012-13. Gary Ashford of the Chartered Institute of Taxation welcomes the initiative, although he fears that people who make genuine mistakes could be caught up in the campaign.

Outsourcing to a small business accountancy will ensure that all earnings are declared and the correct amount of tax paid. A low cost accountants will also minimise your tax bill by claiming all legitimate expenses.

About The Author

Gary Fields

Content Writer working alongside our expert accountants to bring you the latest Tax and Accounting news.

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