Conran Group is latest victim of Revenue tronc probe

Conran Group has confirmed it is among restaurant chains being investigated by the Inland Revenue over tronc schemes.

The group said in a statement that "in common with other restaurant groups" it was talking to the Revenue about its investigations into the schemes, through which tips are distributed to staff.

Reports over the weekend said Sir Terence Conran was one of hundreds of restaurateurs facing demands.

The Inland Revenue has confirmed some 300 restaurants are being investigated, but has stressed this is not a separate probe into restaurants.

"We are not targeting restaurants. This is part of the 32,000 reviews of employer operations we carry out every year," said a spokeswoman. "We do not want people in the restaurant business to think they are being penalised. They are not."

One restaurateur is facing a bill of more than £3m, but for most the bill is likely to be far less said the spokeswoman.

The problem arises where restaurants are found not to be complying with strict Inland Revenue rules over tronc schemes.

It has meant some establishments have been given a bill of six years' backdated National Insurance contributions, plus interest and penalties.

Hopes were dashed earlier this month that the taxman and the trade might reach agreement on an amnesty for restaurants over improperly run tronc schemes.

Conran is not the only big name in trouble. Mon Plaisir, London oldest's restaurant, has been served a demand for £400,000 by tronc inspectors, and could go bust as a result.

And David Moore, owner of the two-Michelin-starred Pied à Terre restaurant in London, received a demand for £200,000-worth of backdated National Insurance contributions following an Inland Revenue investigation.

But after protracted negotiations he managed to settle with the Revenue, agreeing to pay a lower figure.

by Nic Paton

Buy this week's Caterer magazine for more industry news and analysis