A question about tipping

Friend of mine had a wristwatch from Radio Shack that was similar in function, and he did annoyingly use it to change channels, volume etc. in bars and restaurants.

I was considerate of others, but I refused to sit alone in a waiting room w a blaring TV I couldn’t reach.

I know that the UK rules were tightened up a few years ago. Partly as a result of some scandals where employers were keeping the tips and not passing the total amount to the staff, and partly because HMRC really doesn’t like anyone earning money they don’t pay tax on.

With cash tips, the individual employee is required to advise HMRC of the amounts received. The tax will usually be recovered by an adjustment to the employee’s PAYE tax code.

Many restaurants operate a “tronc”. which is run by a nominated “troncmaster”. Their job is to distribute all of the gratuities added to payments after taking out the individual’s tax.

For an individual employee, there is a benefit to tips in cash. HMRC know what the “average” is, so an unexpectedly generous tip might go unreported. Taxes on pay are in two parts. PAYE @ 20% on earnings over £12,570 for most lower-paid people, and NI @ 12% on earnings over £123 a week. NI is not charged on cash tips.