CJRS, tips and troncs: the changes explained by John Chaplin, Partner at BDO London

BDO’s John Chaplin looks at two issues affecting hospitality businesses – the furlough scheme and gratuities.

Employment tax issues can have a major impact on hospitality businesses. Two of the hottest topics in this arena right now stem from past CJRS claims and looking ahead to tips and troncs changes in the future.

Our latest Restaurants and Bars report and Hotel Britain report also looks back at performance in 2021 and ahead at the trends we expect to see in 2022.

Coronavirus Job Retention Scheme Claims

One of the areas we are constantly discussing with our clients is the possibility of HMRC carrying out a review of their CJRS claims, that could potentially lead to repayments of CJRS grants, paying employees underclaims and the prospect of penalties. 

Our experience from reviewing claims is that in most instances, errors have been made, which is understandable when we know the calculations are not at all straightforward and there are over 400 changes to HMRC’s own guidance on the subject. 

Some are unsure whether errors have been made and if it would be best to wait for HMRC to knock on the door instead of looking at beforehand. Our specialist team believe that a proactive approach should be taken, not only to reduce any potential penalties arising from non-disclosure or securing agreement to over and under claims, but also to free up the internal resources that would otherwise be needed dealing with the line-by-line reviews from HMRC that are coming.

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