The recent announcement banning the use of tips to top up the minimum wage, combined with the public's ongoing concerns over how service charge is used, means many customers are now reverting to cash tipping. Tax expert Peter Davies explains how employees and employers can stay on the right side of the law.
Over the past two decades, we have seen a number of changes to customers' tipping habits, with less and less being paid by cash. First, there was the increased use of credit cards and then came the advent of the service charge. Collecting piles of coins and notes from tables and sharing them out at the end of the night became a minor aspect of the tips system for many restaurants.
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