A new survey shows that Brits on both side of the bar remain unsure of how tips work – and that the stingiest tippers live in Yorkshire and the most generous in the South West.

 

Half of those in Yorkshire would only consider paying a 5 per cent tip to waiting staff, but across the nation half of Brits believe a 10 per cent tip is a "fair and reasonable" amount.

Nearly 80 per cent don't think it's fair to pay restaurant service charge and believe only individuals should be tipped for their work, according to the survey for Perrys Chartered Accountants.

In October the government announced plans to stop businesses from taking any share of tips after it was revealed that many large chains still routinely took a percentage of tips paid by credit and debit cards.

The survey shows, however, that many Brits still assume that serving staff get the full share of tips.

Bar and restaurant staff too are confused, said Alex Skinner from Perrys Chartered Accountants.

"What many people don't realise, including waiting staff themselves, is that if you receive a cash tip, it is your responsibility, rather than your employer's, to make sure any relevant income tax on that tip is declared and paid to HMRC.

"For lots of waiting staff, particularly those who are employed seasonally, or on a more casual basis, this can be difficult to organise."

Some suggest a simpler method for pubs and restaurants is a 'tronc' scheme - a means of collecting the tips from customers in a common fund.

"Staff can agree how tips will be shared in advance and administer tax payments more simply," explains Alex.

"Whether tips are paid in cash or card, any income tax can be dealt with by the employer. The 'tronc' also means that any electronic payments to staff will not incur National Insurance deducations, although Income Tax is still payable."