HMRC have issued a fourth version of its booklet ‘Tips and Gratuities’ (E24). There were issues with previous versions and after representation by interested parties the booklet has been amended. Although written in the expectation that it will be read and used by restaurants, the rules are equally applicable to other trades where the receipt of tips is customary; for example, employed taxi drivers and, in some instances, hairdressers.
HMRC had made a number of assertions that they now accept were incorrect and agreed settlements with many businesses based on their earlier guidance. If this applies to you and you have not been contacted by them to offer you a refund, contact them urgently. Please get in touch if you would like us to help you do this