Anger has broken out among the hospitality industry over a ‘shocking’ loophole which could be costing operators tens of thousands every year.
Venues across Manchester regularly pay for taxis so their staff can get home safely in the early hours, often when public transport has stopped.
But HMRC rules mean venues can be hit with tax for these fares — whereas regular 9-5 workers’ trips wouldn’t be. Guidance from HMRC says taxi fares can only be exempt from tax and National Insurance if it would ‘not be reasonable to expect the employee to use public transport’ AND if it happens ‘irregularly’.
This means hospitality staff who regularly work past 9pm will be taxed on their cab rides home as a benefit-in-kind. READ MORE: Strangeways here we go: The men walking free from prison One hotel manager, who asked to stay anonymous, said they received a backdated tax bill for more than £30,000 for providing transport for late night staff.
Read more on manchestereveningnews.co.uk