Less than half of respondents (45.5%) are aware of the Voluntary Code of Practice. When asked if the Code of Practice provides a fair and transparent process, 88% agreed and 12% said no with concerns raised about the lack of awareness and that perhaps smaller businesses were not putting the process into practice. When asked if they or their employer sign up to the Code of Practice there was a mixed response. 55% were not sure and there was an even split of 22% saying yes and no. Comments again highlighted the lack of awareness. When asked if they or their employer adhere to the principles in the Code of Practice, 44% said yes and 56% were unsure. Answering as customers, 90% said they leave a tip as a direct response to the service received with comments including, “… we have started to check the receipt as sometimes gratuity is added without permission and is sometimes more than we would normally leave” and “Always leave it in cash”. 60% said that in general they are aware of what happens to their tip with 40% never knowing. When asked what could be done to improve this, comments include the suggestions that the tips policy could be put on show, possibly on the menu with a breakdown of where the tip goes. 50% of respondents operate a troncs system and the other 50% who gave an answer said that all non- cash tips, gratuities, cover and service charges are passed on to the employee in their entirety. When asked how tips and gratuities that are paid in cash are treated 33% said they were retained by the employee, 17% said they were paid into a tronc system with allocation input from employer and 50% also said paid into a tronc system but without input from employer. When asked as customers if their preference when leaving a tip is in cash or by card, 78% said cash and 22% didn’t mind which method. Comments regarding the cash preference included that the employee would be more likely to receive the tip and wouldn’t have to wait until pay day. 56% of respondents would like to see their tips to go in full to the worker, 11% would like to see the tips go via a tronc with an admin fee deduction and 33% would like to see the tips also go via a tronc but with no input from the employer. Conclusion What is apparent from the responses to this survey is there is low awareness of the Voluntary Code of Practice for payroll practitioners and low visibility for customers on premises where tips and gratuities are administered. What is also apparent is that there is a lack of trust in businesses to pass on the full entitlement of tips and gratuities to workers. The CIPP fully supports this call for evidence and would recommend that the Voluntary Code of Practice is given greater publicity in a bid to raise awareness amongst both employers and those businesses dealing with tips and gratuities, perhaps on a statutory footing.
The full response is available to view through the link below.
CIPP response to tips and gratuities call for evidence - November 2015
Payrolling Benefits in Kind – guidance amended 9 November 2015
Following feedback from users, guidance on using the new Payrolling Benefits in Kind service has been amended - Tax your employees' benefits and expenses through your payroll .
We reported on 12 October that the Payrolling online service is now open for registration .
You can now register to use the new Payrolling Benefits in Kind (PBIK) online service to tax your employees’ benefits and expenses through the payroll from April 2016. To avoid being sent multiple tax codes for your employees you need to register before the annual coding process which usually starts around 21 December. From 6 April 2016 you will need to use the new Payrolling Benefits in Kind (PBIK) online service if you want to payroll your expenses and benefits. This new service replaces the current infomal payrolling process and if used, then from 2016, P11Ds for employees will no longer need to be submitted to HMRC.
CIPP Policy News Journal
25/04/2016, Page 147 of 453
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