The hospitality industry criticises a tax loophole impacting staff safety.
- Taxis provided to late-night workers could be taxed as a benefit-in-kind.
- Managers face significant backdated tax demands for safe staff transport.
- Calls intensify for legislative changes to protect vulnerable workers.
- Industry leaders demand HMRC reconsider rules impacting worker safety.
The hospitality sector is facing significant challenges due to a tax regulation that many consider unjust. Under current HMRC rules, taxi fares provided by employers to ensure the safe return of staff after late shifts are classified as a benefit-in-kind, potentially leading to substantial tax liabilities. These regulations are particularly impactful in cities like Manchester, where venues frequently cover transportation costs when public transit options are unavailable.
Employers are feeling the strain of these regulations, with one hotel manager, who wished to remain anonymous, reporting a backdated tax bill of over £30,000. The manager articulated the frustration of many in the industry, stating: “It’s a punishment for ensuring our staff are returning home safely. If we provide a late-night taxi to take home a member of the bar team who works until 2 a.m. every Friday, that is classed as a regular occurrence and subject to charges. Are we meant to leave our staff to walk home?”
The situation has prompted responses from notable figures within the industry. Sacha Lord, the night-time economy adviser for Greater Manchester, characterised the loophole as “an astonishing and quite sickening discovery.” He expressed his concern about the impact on businesses that have been proactive in ensuring employee safety, suggesting that current policies might disincentivise protective measures. Mr. Lord is actively advocating for a change in legislation following the 2022 ‘Get Me Home Safely’ initiative, which aimed to enhance security for late-night workers.
There is a growing call for action and reform. Bryan Simpson from Unite the Union anticipates modifications to the Equality Act that may obligate employers to prevent third-party harassment, further complicating the landscape for hospitality venues. This expectation aligns with broader industry efforts to protect workers without incurring additional financial burdens.
Overall, the enforcement of this tax regulation raises questions about the priorities of HMRC, with industry leaders and unions urging the government to reassess these rules to better support the safety and welfare of staff.
The hospitality sector continues to battle for fair tax treatment to ensure employee safety without punitive financial consequences.
