There's something new on the menu!

The latest course in the long running debate on the taxation of tips was served up last week when HMRC released the revised booklet Tips Gratuities Service Charges and Troncs also known as 'E24'. (On the Internet at www.hmrc.gov.uk/helpsheets/e24.pdf.)

For practitioners who have clients in the hospitality and catering trades this latest version of the official guidance will be welcomed coming as it does after several years of uncertainty. The Inland Revenue (as it was) had originally issued E24 in February 2004 to explain its interpretation of the legislation relating to National Insurance contributions (NICs). At the same time 'Operation Gourmet' the Revenue's name for its co-ordinated series of investigations into restaurant businesses was in full swing. Many businesses were faced with demands for allegedly unpaid NICs and some restaurants were reported to have closed down as a result.

The full account of...