Quote: JerryChicken "This also explains to me why a certain hotel local to here has recently ordered its staff to refuse tips from customers with no corresponding uplift in wage rate to compensate, if the customer absolutely insists its to go to a nominated charity, if the employee accepts and doesn't declare it then its a disciplinary matter - the hotel can now declare to HMRC that it has no liability for estimated income tax payments on employee tips.'"
Not true. If a hotel worker is given a tip and the worker keeps it, then the hotel has to pay 0 tax. The company only has to ensure tax is paid if the tips go into a tronc and then are distributed by the hotel.
The local hotel took this decision because workers were complaining that tip money was being used to cover the cost of breakages.