Fair tip distribution session for pubs

Pubs and restaurants that fail to distribute tips and service charge fairly are being targeted in a new scheme.

It can be complicated as employers must ensure tips are given out fairly and comply with the complex tax and National Insurance regulations.

Operation Gourmet was launched a decade ago to deal with non-compliance around National Insurance contributions and tax evasion in the restaurant sector.

It targets businesses that do not distribute tips fairly or use them to make up wages, allowing them to dodge tax and NI payments.

The focus will be on London sites initially with the rest of the UK's businesses coming under scrutiny later.

Hospitality software provider Fourth Hospitality is hosting a free session in London on 14 September to help operators understand how to fairly and legally deal with tips. It will be in conjunction with law firm Candey.

"There are many rules surrounding the payment of service charges and tips, whether using troncs or not, and we know it can be confusing," says Paul Watson, customer success manager at Fourth Hospitality.

"That is why we are holding a free legal advice session so restaurateurs can ensure they are playing by the rules and giving every staff member what is owed to them, while also paying the right amount of tax and National Insurance."

"It may even be that some businesses are owed a NIC refund, so it is well worth attending and getting on top of this difficult issue."

The session will take place on Wednesday 14 September at 5pm at Candey in London. To book a place email fhpprff@sbheguubfcvgnyvgl.pbz​.