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Compulsory service charges

j wang
Posted Thu, 17 Oct 2024 14:20:51 GMT by j wang
Hi, I have a restaurant and the service charges are mandatory on the bill. Can I please check if the mandatory service charge is under the scope of the Tipping Act 2023 that comes into force on 1 Oct 24? I have to pay VAT on the compulsory service charges , do i still need to share the service charges with staff under the act?
Answer
HMRC Admin 17 Response
Posted Tue, 22 Oct 2024 10:46:59 GMT by HMRC Admin 17 Response

Hi ,
 
The Tipping Act 2023 is not a HMRC Act - pleses contact ACAS on 0300 123 1150 - or the Department for Business & Trade as they published this code of practice  see:

 Code of practice on fair and transparent distribution of tips (HTML version) .

Thank you .

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