05.11.2009

Change in the law affects wages  in the  hospitality  industry, the latest from the HMRC  regarding  Stamp Duty and  recovering VAT for theatres.

Tips and national minimum wage
As a result of a change in the law, employers in the restaurant and hospitality trade must pay wages to meet their minimum wage obligations, irrespective of how much the employees also receive in tips. The issue came to light some time ago in the appeal case of Annabel’s night club, and following the success of the club, Government announced that a change in the legislation would follow. This has been implemented from 1 October 2009.

More HMRC bank account changes
HMRC has been implementing changes to their banking arrangements affecting all taxes. The latest announcement affects payments of Stamp Duty and Stamp Duty Reserve Tax. Businesses making payments direct to HMRC bank accounts should check to ensure that they are up to date with the latest account details. More information is at http://www.hmrc.gov.uk/payinghmrc/change-of-bankacc-hmrc.htm .

Theatres and VAT recovery
The Tribunal appeal case of Garsington Opera has prompted a change of view by HMRC about the recovery of VAT on the costs of staging shows. Garsington successfully argued that some of the costs of the production related in part to the corporate sponsorship, programmes and CD’s meaning that some of the VAT incurred on the costs would be recoverable, as many of the supplies to which the input tax was attributed were taxable. HMRC has provided guidance to theatres and production companies and some additional claims of input tax may be available.