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What is tip called in UK?

In the United Kingdom, tipping is commonly referred to as a “tip” or a “gratuity”. It is an extra payment made directly to a server, taxi driver, hairdresser or other service worker in addition to the advertised price for the service.

Common Terms for Tipping in the UK

Here are some of the most common terms used for tipping in the UK:

  • Tip – The most generic term for an additional payment given directly to a worker.
  • Gratuity – Also widely used to refer to a tip.
  • Service charge – A fixed percentage added to the bill in some restaurants instead of tipping.
  • Tip jar – A jar or box left out to collect cash tips from customers.
  • Buy the staff a drink – Leaving money at a bar or pub to buy a round for the staff.

When is Tipping Expected in the UK?

Tipping etiquette can vary across different services in the UK. Here are some guidelines on when tipping is customary:

  • Restaurants – Tips of 10-15% are typical for good restaurant service. Some eateries may include a discretionary service charge.
  • Taxis – Tips of 10-15% are also standard for black cab and minicab drivers. Tip jars may be present.
  • Hair and beauty – Tip 10-20% for services like haircuts, nails, massages if you were satisfied.
  • Pubs – Not obligatory, but you can tip 10-15% of the bill or buy a drink for the staff.
  • Hotels – Tip porters £1-£2 per bag, £5 or more for room service.
  • Food delivery – Voluntary £1-£2 tip for takeaway deliveries is welcomed.

Etiquette for Tipping

Follow these general etiquette guidelines when tipping in the United Kingdom:

  • Tip in cash when possible. Many workers prefer cash tips.
  • Tip at the end of the service, not beforehand.
  • 10-15% is a good baseline tip amount for standard services.
  • Consider tipping more for exceptional service or complicated requests.
  • Avoid excessive tipping beyond 20% unless service was extraordinary.
  • Don’t tip if the service was rude or unsatisfactory.

Taxation of Tips

Tips received by workers are taxable income in the UK. Employees who receive regular tips should report them to HM Revenue and Customs. Some tipping etiquette rules stem from tax practices:

  • Don’t write the tip amount on receipts, as this forces the employer to report it.
  • Cash tips aren’t traceable and are often preferred by service staff for this reason.
  • Service charges on bills go directly to the business so they must be properly taxed.

Tip Sharing Customs

In some services, tip sharing or tip pooling is common among the staff. Examples include:

  • Restaurants – Servers often share a portion of tips with busboys, bartenders, cooks.
  • Spas/Salons – Staff who provide support services get a cut of tips.
  • Hotels – Bellhops, porters, housekeeping may share in tips.

Customers are not obligated to participate in tip sharing. But in general, 10-20% tips are split up among various staff that contributed to the service experience.

The History of Tipping in the UK

Tipping has a long history in British culture, dating back to Tudor times in the 16th century. Some highlights:

  • Tipping started with aristocrats giving sums of money to servants and laborers.
  • In the 17th century, overnight guests began tipping innkeepers and servants.
  • By Victorian times, tipping was expected in many settings including restaurants.
  • Rail porters, cab drivers and other service jobs came to depend on tips by the 19th century.
  • Attempts to ban tipping to prevent exploitation never gained traction.
  • Post-war prosperity expanded tipping to more services like hairdressers.

While practices have evolved, tipping remains an established custom and social norm in modern British culture.

Tipping vs Minimum Wage

An ongoing debate around tipping is whether it allows employers to bypass minimum wage laws. In the UK, the current National Living Wage for over 23s is £9.50 per hour.

  • Some argue hospitality staff end up underpaid if tips do not meet minimum wage.
  • However, employers are legally required to make up any shortfall if tips plus wages don’t reach the minimum.
  • Tips cannot count toward the initial wage, which must be at least the minimum wage.

While practices vary, tipping continues because it incentives good service and allows flexibility in worker compensation. But employers must still guarantee at least the legal minimum wage after accounting for tips.

Conclusion

Tipping is a well-established social custom in the UK, with its own language, etiquette and quirks rooted in British history. While practices vary between services, tipping continues to thrive as a way to reward good work and supplement incomes in certain jobs. However, employers must still pay at least the legal minimum wage accounting for tips received.