Although you might buy the lecturer a bottle of something nice at Christmas with your fellow students?
Service Charge - Enforced Tipping
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The system is usually run by an employee rather than management. They sort out the “tronc “ & make sure it runs fairly.
No, nor would we give presents to the cleaners, the library staff, the exam invigilators, the IT technicians or any other of the 3000-odd staff without which the university wouldn't have functioned.
All such a bizarre concept, rewarding people for doing thier paid job as they should. I hope we don't follow the US and it all dies out within a generation or two, which is likely given the binmen etc will likely be robotic.
People are conflating tipping and service charge once more.
Tip as much as you like on your own terms with no restraint. Tip everyone for everything - if you feel moved to do so.
If I had a good teacher or mentor I would consider giving them a gift ( as opposed to a tip ) if I felt they went over and beyond.
I 'tip' the dustbin people at Xmas and others as I see fit.
Service charge seems to be an insidious concept created without your direct input and often hidden away in small print until after the conventional event.
Tipping - provided voluntarily after the fact.
Service charge - In place and terms dictated by others.
I'd love to see people buying new homes getting an additional charge for services the plasterers and brickies apprentice contributed to building of the house.
Tip as much as you like on your own terms with no restraint. Tip everyone for everything - if you feel moved to do so.
If I had a good teacher or mentor I would consider giving them a gift ( as opposed to a tip ) if I felt they went over and beyond.
I 'tip' the dustbin people at Xmas and others as I see fit.
Service charge seems to be an insidious concept created without your direct input and often hidden away in small print until after the conventional event.
Tipping - provided voluntarily after the fact.
Service charge - In place and terms dictated by others.
I'd love to see people buying new homes getting an additional charge for services the plasterers and brickies apprentice contributed to building of the house.
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I'm not sure if there is confusion the two-There is concurrent discussion on the concept of optional tips, a closely related subject. I've stated I don't like either of the practices.
I won't stray further into other concepts I dislike along the same lines, such as charity representatives accosting people in the streets. I dislike anything which preys on the fairly common weakness (not one I suffer from) of not wanting to be thought ill of, or not wanting to make a fuss. There would likely be less awkwardness for a lot of people if the custom of tipping was ditched.
Perhaps the service charge is a ditch attempt to prop up a hospitality sector which is on the way down. Rather than increase menu prices to the point where people may be put off, add a stealth tax to try and offset the rising cost of employment, energy, ingredients and a lot of big changes in dining habits?
I won't stray further into other concepts I dislike along the same lines, such as charity representatives accosting people in the streets. I dislike anything which preys on the fairly common weakness (not one I suffer from) of not wanting to be thought ill of, or not wanting to make a fuss. There would likely be less awkwardness for a lot of people if the custom of tipping was ditched.
Perhaps the service charge is a ditch attempt to prop up a hospitality sector which is on the way down. Rather than increase menu prices to the point where people may be put off, add a stealth tax to try and offset the rising cost of employment, energy, ingredients and a lot of big changes in dining habits?
TIp is totally discretionary and paid byt he customer after service and often after the bill has been paid. It is really a cash based system and is effectively a tax avoidance system as cash is not taxed. It is a form of remuneration for the recipient so should actually be taxed.
The service charge is also totally discretionary but is handled at the bill paying stage. and is often not pointed out as clearly as it should be that it is there and that it can be removed at the customer's discretion. That is the rub, you have to be confident to do that I reckon, or difficult. IT is however a good way to stop the one individual who took the tip after payment from pocketing it and not sharing it. The service charge is like the tronc system from France (almsbox I think it means) and if you do want to tip is perhaps fairer as it often includes the backroom staff in a restaurant.
Both systems top up a pay packet but since there is a minimum living wage that has increased a fair amount it should not be needed as a salary top up. The cost of the living wage is in the food bill and should always stay in there and be given to the server.
I do think that this whole tip / service charge system should be stopped though. It is a kind of tax on the gullible customer without the personal wherewithall to say no! Also if cash based tip untaxed income tax avoidance. If in a sevice charge there is never a guarantee that it all goes fairly to the staff. However there is a bill on the way I think that could change that. I personally think there should be a conversation as to whether there is a need for tipping / service charge or whether there is more need about whether the minimum living wage or whether what serving and lets be honest here, all restaurant staff get paid enough for what they do. IF the answer is yes then the service charge and enforced tipping should be made illegal. IMHO of course. I do not know which of those two situations is the true case, paid too low and need it or don't need it and should be stopped.
The service charge is also totally discretionary but is handled at the bill paying stage. and is often not pointed out as clearly as it should be that it is there and that it can be removed at the customer's discretion. That is the rub, you have to be confident to do that I reckon, or difficult. IT is however a good way to stop the one individual who took the tip after payment from pocketing it and not sharing it. The service charge is like the tronc system from France (almsbox I think it means) and if you do want to tip is perhaps fairer as it often includes the backroom staff in a restaurant.
Both systems top up a pay packet but since there is a minimum living wage that has increased a fair amount it should not be needed as a salary top up. The cost of the living wage is in the food bill and should always stay in there and be given to the server.
I do think that this whole tip / service charge system should be stopped though. It is a kind of tax on the gullible customer without the personal wherewithall to say no! Also if cash based tip untaxed income tax avoidance. If in a sevice charge there is never a guarantee that it all goes fairly to the staff. However there is a bill on the way I think that could change that. I personally think there should be a conversation as to whether there is a need for tipping / service charge or whether there is more need about whether the minimum living wage or whether what serving and lets be honest here, all restaurant staff get paid enough for what they do. IF the answer is yes then the service charge and enforced tipping should be made illegal. IMHO of course. I do not know which of those two situations is the true case, paid too low and need it or don't need it and should be stopped.
Just for the record - cash tips are taxed if they are declared as they should be.
Dunno what happens these days but when my wife was an inspector in the then IR: any table-waiting or bar staff who didn’t declare that they receive tips would be asked to confirm. Tips are specifically mentioned on the employer’s return and in the accompanying literature. In those more leisurely days, if they maintained that they didn’t receive tips they would have received a “May West”. (Come up and see me.)
I’m guessing that, much like the police force, HMRC are stretched to the point that this may well not be pursued today.
www.gov.uk
I’m guessing that, much like the police force, HMRC are stretched to the point that this may well not be pursued today.
Tips at work
Tips at work do not count towards the National Minimum Wage - tips and tax, what your employer has to do, advice and help, cash in hand payments
I had a mate who was in HMRC and he said they didn't; bother with cash tips. Too hard or wasteful to police for little gain. However the service charge in the bill possibly ends up going in the pay slip as a bonus and gets picked up by the employers payroll system with most waiting staff PAYE. Cash tips slip under the tax radar.
Interestingly he told me a few more things about how they work. It seems they don't defacate in their own backyard, or words to that effect. In that they mean if they are out with a group of people and hear about something most definitely contravening the tax regime, well they do not do anything about it. Unless it sounds like it is a big avoidance scheme then they heads up to someone in another office and leave it at that. Other things include how they often get offers of well paid jobs as a gamekeeper turned poacher by tax advisory organisations. He realised that the tax system is always changing so what knowledge he had in HMRC pretty soon becomes less than valuable after going into the private sector as all his loopholes get closed. So he didn't see it worth doing, he just rose up the ladder within the HMRC.
I still remember the social in which he was new to the group and not widely known what his occupation, An SME managing director was telling others at the opposite end of the table about a questionable tax reduction scheme he used. The director paused after spotting the new guy at the other end of the table had looked up to pay attention to that conversation instead of his own. That caused the director to stop and ask across the table what that new guy's job was. The guy smiled and said HMRC tax inspector. The director went white until the guy told him about what he did not do in his backyard. The director used to be full of money making schemes and tax schemes but that soon stopped. Good thing too as it was pretty boring.
Interestingly he told me a few more things about how they work. It seems they don't defacate in their own backyard, or words to that effect. In that they mean if they are out with a group of people and hear about something most definitely contravening the tax regime, well they do not do anything about it. Unless it sounds like it is a big avoidance scheme then they heads up to someone in another office and leave it at that. Other things include how they often get offers of well paid jobs as a gamekeeper turned poacher by tax advisory organisations. He realised that the tax system is always changing so what knowledge he had in HMRC pretty soon becomes less than valuable after going into the private sector as all his loopholes get closed. So he didn't see it worth doing, he just rose up the ladder within the HMRC.
I still remember the social in which he was new to the group and not widely known what his occupation, An SME managing director was telling others at the opposite end of the table about a questionable tax reduction scheme he used. The director paused after spotting the new guy at the other end of the table had looked up to pay attention to that conversation instead of his own. That caused the director to stop and ask across the table what that new guy's job was. The guy smiled and said HMRC tax inspector. The director went white until the guy told him about what he did not do in his backyard. The director used to be full of money making schemes and tax schemes but that soon stopped. Good thing too as it was pretty boring.
I don't usually do elegant. Waffle, digression, losing my thread I do but elegant is not how I would describe most of my posts, but I thankj you for that nice comment!!
Whereas I generally refuse to use takeaway delivery services exactly for this reason: I don't want to encourage exploitative systems when I can easily avoid them.
In the marketplace, only money talks. If you pay, you are complicit.
I will tip cash if the service has been good. I boycott any business that has gone completely cashless. I refuse to pay service charges for restaurant service and that other blatant theft practice of a booking fee whilst buying a ticket. Wrong wrong wrong. If they try any of that with me I leave never to return. x
