| Topic: | Re:Re:Re:Re:Bill's Restaurant Keeping Staff Tips | |
| Posted by: | Shelagh Lafferty | |
| Date/Time: | 18/06/15 09:13:00 |
| Completely disagree it should be used to make up the hourly wage. However, pooling of tips is not that uncommon to ensure HMRC rules on National Insurance and Income Tax are followed. Tips are classed as secondary income and should be taxed at basic rate. If not delcared Mr Taxman can come a calling on the owner and claim all the unpaid tax on tips over the previous 7 years, which they have to pay, not the employee. Happened to someone I know and it was a very costly error. Tips were then administered through a separate payroll after that stressful encounter. So it's a bit more complicated than just handing a tenner to your waiter however good your intentions. |