In the UK if you mandate a service charge, the company must pay tax on it. So they auto apply it as discretionary and hope nobody removes it. Then the companies take a percentage of it for "administration".
This all changes in october however when it will be law that 100% of tips go to staff.
Love that the gov will actually be passing that law.
I will say though, Iโm lucky enough to have worked in places that respect and care for their employees enough to pay us our deserved wages AND keep our tips
No, no , no taxes are government things. They just ask you nicely and dare you to face public pressure - "how dare you not to tip and take food from the mouths of hardworking people living on those tips".
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u/SmackedWithARuler Aug 28 '24
If a tip is mandatory then isnโt it a tax?