May 12, 2011
Following the news that HM Revenue & Customs (HMRC) will be targeting the restaurant trade to tackle tax evasion, avoidance and fraud initially in London to be followed by Scotland and the North West, the British Hospitality Association have issued the following statement:
The British hospitality industry is worth £46 billion to the UK economy and the core hospitality economy is estimated to directly contribute £34 billion in tax revenue. Our industry directly contributes 2.44 million jobs making the hospitality sector the fifth largest industry in the UK. Plus a further 1.2 million jobs are indirectly generated by hospitality, accounting for a total of eight per cent of employment in the UK.
The vast majority of hospitality businesses are responsible enterprises and comply fully with all legal requirements and guidance as laid down by HMRC.
Mike Eland, director general for Enforcement and Compliance, said;
‘Only those who choose to break the rules, or deliberately evade the tax they should be paying will be targeted. Honest businesses have absolutely nothing to worry about.’
Members of the BHA should therefore have no cause for concern following the announcement.
The British Hospitality Association have approached HMRC for further information regarding the task force and have offered to provide assistance on this initiative.