Le Colombier
Tax inspectors did a routine inspection of the Le Colombier restaurant in London, where a tronc scheme had been operating for several years. The restaurant was told it had a national insurance liability of over £200,000.
Le Colombier called on us to help. We felt any breaches of legislation were minor at worst and we held this line in the face of determined opposition from the Inland Revenue. Eventually, after much correspondence and meetings, we achieved an agreement that there was no liability for either income tax or national insurance.
We were recommended to Vantis who are well known in the restaurant and hospitality industry. Initially, we were very concerned about the demand from the Inspector of Taxes because we believed that we were correct in what we had done. The Inland Revenue were, however, determined to pursue the case and, however hard we tried, they kept coming back with further points for us to deal with.
Although it has taken over 12 months to resolve and has been very worrying, we are delighted with the outcome. We are extremely grateful to Vantis for the advice they gave us and the way they negotiated our case with the Inland Revenue.
Didier Garnier, Managing Director, Le Colombier
Pied-a-Terre
The Inland Revenue did a PAYE inspection of London restaurant Pied-a-Terre, followed by a detailed investigation of its tronc scheme. The Inspector of Taxes told the restaurant it was liable for approximately £200,000, as it had operated the scheme incorrectly. Pied-a-Terre asked us to help resolve the situation.
We acted quickly, and although the restaurant’s operation of the tronc scheme was indeed in breach of the tax regulations, we negotiated a settlement with the Inland Revenue that came to approximately 15% of the amount originally demanded.
After the PAYE inspection we knew we faced difficulties. We were recommended to Vantis, who not only were familiar with the way the tronc scheme should be operated but also knew, and were respected by, the Inland Revenue tax district involved.
Although we were not aware that we had been doing anything wrong, we realized at an early stage that we were in difficulties and were very pleased with the result – and with the way that Vantis handled the negotiations for us.
David Moore, Managing Director, Pied-a-Terre