The Government has launched a consultation on the treatment and transparency of tips, gratuities, cover and service charges.

The consultation covers the Government’s response to its earlier call for evidence (launched August 2015) and contains proposals for further action.  The three broad policy objectives are that all payments should be:

  • Discretionary and clear to customers that they are voluntary;
  • Received by workers; and
  • Clear and transparent to consumers and staff in terms of how they are treated.

The consultation documents sets out a range of questions and possible options for achieving these.

No proposals are made to alter the income tax or NIC treatment of tips, gratuities and troncs.

The closing date for comments is 27 June.

Link to consultation document:  Government consultation on tipping, gratuities, cover and service charges


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