Tax Investigations Update

Richard Clarke director in PricewaterhouseCoopers LLP tax investigations practice looks at the Annabel's (Berkeley Square) Ltd Tribunal decision and how it affects HMRC's focus on restaurant and other hospitality businesses

Another chapter has been added to the story of HMRC's wide-ranging investigations into a large number of restaurant and catering businesses. On 13 June judgment was given by the Employment Appeal Tribunal in Annabel's (Berkeley Square) Ltd and associated companies UKEAT/0562/07/RN which has been hailed by HMRC on its website as 'good news for the UK's restaurant and bar workers'. The point before the Appeal Tribunal was whether the employers had discharged their obligation to pay at least the national minimum wage (NMW) to their employees. The case was brought by HMRC not by the employees as the enforcement of...