Fri Jan 25, 2019 10:13 am
#1668408
Ordinarily 10% (never less), but if only using notes the tip would be too "lumpy" for my comfort.
Miscellaneous wrote:That's two now that have indicated they only tip coins.
It has to be asked; at what level does a tip become an insult?
Bill Haddow wrote:It is most instructive to look at the implications of the various taxes involved.
Let us say that the waiter is on minimum wage, and his employer, a lady with a social conscience and well aware of the affluence of those who can afford to eat in pubs, decides he should have an extra £5 in his pocket. To allow for PAYE and Employee's NIC, she actually has to pay him £7-35 gross for him to get £5 nett. Then of course there is the matter of Employer's NIC which adds another £1-01 bringing the cost to the business up to £8-36. For the business to recover this £8-36 from its customers, she has to increase the prices, but of course VAT at 20% has to be added, so the cost to the customer is now £10-03.
Yup, for you to pay that guy a fiver extra through the legitimate payroll system, you would need to pay another £5-03 to the Chancellor.
No wonder there is a black economy. No wonder the hospitality sector has low wages and relies on tips.
Bill H
tomshep wrote:There is enough money in the British economy to pay everybody enough to live on
JoeC wrote:
So the employer wants to pay the employee more at no cost to the employer?
JoeC wrote:Your logic is flawed.
JoeC wrote:
What you should have said is that the employer wants to pay the employee more at the expense of the customer.