Tronc scheme audits
Regular changes to legislation and HMRC policy make it hard to keep track of the do’s and don’ts of dealing with tips, service charges, and troncs. WMT can review your existing processes, providing a tronc scheme audit report that explains how you can protect yourself from HMRC demands and penalties.
Difficulties in keeping track of the rules on distributing service charges and tips to staff can lead hospitality businesses to either:
- Take unnecessary risks – by managing the process as they see fit and hoping it passes HMRC scrutiny; or
- Be overly cautious – missing opportunities to make the most of tax reliefs and exemptions, reduce National Insurance Contributions (NICs), and offer more attractive packages to potential recruits.
WMT’s tronc scheme audit reviews your existing processes for distributing tips, service charges, and other gratuities to highlight areas of concern and untapped opportunities.
Our free report will identify whether:
- Your arrangements qualify for reliefs and exemptions and would be accepted by HMRC in an enquiry; or
- Your arrangements would be accepted by HMRC in an enquiry situation. However, you and your employees are paying more in tax or NICs than necessary; or
- There are one (or more) issues which could lead to a demand against you or your business. The demand could be for tax, NICs or National Minimum Wage/National Living Wage payments.
Get in touch with our hospitality team to find out more about how we can help you.