Any barworkers on here? Question about tips.

Empor

Do all cash tips go in the jar behind the bar, or are they left in the till and any overage taken out as tips at the end of the night?

e.g. on a busy bar if the customer says "keep the change" is the change counted out and put in the jar, or is it left in the till until the end of the night?

MovingForwards

Whenever I've done at work it's been put in a jar, doesn't mean it's dished out each night though.

suki1964

Always been put in the jar in places Ive worked

However, thats not to say the owners haven't raided said jar to make up till shortfalls

Last place I worked, all tips were shared amongst all the staff which was a great idea, till the share out at Christmas saw you get perhaps £100 each. Now all the tips are shared out at each shift change between all those working that shift and staff are now getting what they should have been getting

Don't forget, you have to declare tips for tax

Empor

suki1964 wrote: »

Don't forget, you have to declare tips for tax

I know this is supposed to be the case, but in the real world does this actually happen?

LilElvis

Empor wrote: »

I know this is supposed to be the case, but in the real world does this actually happen?

Here's what HMRC says on the subject:


https://www.gov.uk/tips-at-work/tips-and-tax

As HMRC know what sort of business your employer runs they will be expecting the correct declaration to be made. Having audited numerous hospitality venues in the past I know that inspectors from HMRC will make a beeline for this information when they conduct their own audits. I've known them make assumptions based on takings from restaurants and then presented owners with a tax bill based on their estimates as to tips that should have been declared - plus juicy penalties.

Empor

LilElvis wrote: »

Here's what HMRC says on the subject:


https://www.gov.uk/tips-at-work/tips-and-tax

As HMRC know what sort of business your employer runs they will be expecting the correct declaration to be made. Having audited numerous hospitality venues in the past I know that inspectors from HMRC will make a beeline for this information when they conduct their own audits. I've known them make assumptions based on takings from restaurants and then presented owners with a tax bill based on their estimates as to tips that should have been declared - plus juicy penalties.

That seems to apply to tips via credit cards, but what about cash tips given directly to staff? Maybe I'm doing them a disservice but I can't imagine they all (or even a large minority) contact HMRC.

comeandgo

Once HMRC knew I was working at a hotel chain my tax code was adjusted to account for tips. It was up to hotel accountant to fight my corner and explain staff were not allowed to accept tips. I'd suggest you do not annoy HMRC. They know who you work for, they have an idea of how much tips you will get.

suki1964

Empor wrote: »

That seems to apply to tips via credit cards, but what about cash tips given directly to staff? Maybe I'm doing them a disservice but I can't imagine they all (or even a large minority) contact HMRC.

HMRC know who you are working to

Working a chain? They know from others what the average in tips are

Working for an independent, they know what your employer is putting through

Sure if you are in a place a few weeks or months, its not going to come back and bite your bum, but over a year or more and the risk rises


All HMRC think, is if the business is claiming for X amount in takings, then there is Y amount in tips coming in