We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Service Change - is it compulsory - in UK

Options
I have noticed that some restaurant are now adding a service charge to their bill
can I refuse to pay this?


As I would expect the running cost of the business to have already be added in the meal.


I have email a few restaurants but got no reply.


I am not being cheap or tight - but i think this is unreasonable, it like an added tax especially when the staff still expect a tip..?

Comments

  • dlusman
    dlusman Posts: 2,711 Forumite
    Tenth Anniversary 1,000 Posts I've been Money Tipped!
    aviii wrote: »
    I have noticed that some restaurant are now adding a service charge to their bill
    can I refuse to pay this?


    As I would expect the running cost of the business to have already be added in the meal.


    I have email a few restaurants but got no reply.


    I am not being cheap or tight - but i think this is unreasonable, it like an added tax especially when the staff still expect a tip..?

    It depends entirely on if the service charge is described as "compulsory"or not
    http://www.which.co.uk/consumer-rights/problem/do-i-have-to-pay-a-service-charge-if-the-service-is-poor-
  • jon81uk
    jon81uk Posts: 3,885 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Generally it will say on the menu and/or receipt if it is optional. But in most cases it is.

    As a general rule staff shouldn't expect a further tip as well as a service charge. If you want to have it removed you may need a manager though.
  • Discussion about it on the MSE Praise, Vent & Warnings board: NAME AND SHAME. Restaurant service charges (multipage.gif1 2 3 ... Last Page)
  • Esmondo
    Esmondo Posts: 54 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    I was under the impression that the service charge is the same as a tip, so if there is a service charge I just don't leave an additional tip.....
  • dippy3103
    dippy3103 Posts: 1,963 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker I've been Money Tipped!
    Esmondo wrote: »
    I was under the impression that the service charge is the same as a tip, so if there is a service charge I just don't leave an additional tip.....

    Me too..

    I also thought a tip was something you left for good service, not just as a matter of course.

    Compulsory service charges are wrong- they should just put the menu prices up and be done with it.
  • Mr_Singleton
    Mr_Singleton Posts: 1,891 Forumite
    edited 20 March 2016 at 10:14PM
    Esmondo wrote: »
    I was under the impression that the service charge is the same as a tip.
    Not if you're the Tax man it isn't.

    An optional service charge doesn't attract VAT but a compulsory one does. Restaurants work on the assumption that people would be too embarrassed to not pay it so my can pocket the extra 20% VAT on the service charge.

    Same goes for places like McDonalds & Costa Coffee. If you eat/drink out then they pocket the 20% VAT. Eat in and the VAT goes to the Govt. Regardless you pay the same.
  • jon81uk
    jon81uk Posts: 3,885 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Same goes for places like McDonalds & Costa Coffee. If you eat/drink out then they pocket the 20% VAT. Eat in and the VAT goes to the Govt. Regardless you pay the same.

    Hot food and hot drinks always attract VAT so the price is the same at McDonalds no matter whether you eat in or takeaway. Even with the salads and wraps as the chicken is hot so it is classed as hot food.

    Cold food such as cold sandwiches are zero-VAT on takeaway and 20% VAT on Eat-in, so at Costa they charge two different prices for cold food. But hot drink prices are the same no matter if you eat in or take out.
  • britgal
    britgal Posts: 37 Forumite
    I'm fairly sure it is optional. Certainly if ever there is bad service, I would disagree with being charged even if it is printed on the receipt (luckily not had to do that for ages, phew!),
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.6K Spending & Discounts
  • 244K Work, Benefits & Business
  • 598.9K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.3K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.