Will waiters face financial problems with new tipping rules?

Waiters and waitresses could be set to suffer financially following a change in the law that requires them to pay tax on tips they receive, it has been claimed.

New laws set to come into force today (September 29th) will prevent employers from using tips to make up staff wages.

This may mean hospitality staff lose out, as they will now be required to pay National Insurance contributions on an element of wages that was made up by the service charge, previously excluded from the tax, according to British Hospitality Association spokesperson Miles Quest.

Waiters and waitresses could in turn find it more difficult to undertake credit repair to sort out their finances.

Mr Quest explained: "We support transparency in all things and it is a good thing that customers do know exactly what does happen to the service charge.

"Food service staff ... will now have to pay National Insurance contributions on the element of the wages that was made up by the service charge. They will probably lose out."