I'm in a tricky situation recently I started working at a nightclub as a waitress and customers already pay a 15% service charge.
I get paid my basic salary and will get paid voluntary tips by some customers however my new employer has just told me I will be discounted of this Voluntary tips paid by card by customers 20% as he said as a business he is charged VAT , and if they pay by certain banks will be another 2.5% less .
And another 20% to go to other employees like Kitchen staff etc which I think is fair .
however I will like to know if this is correct ?
as I had understood businesses only get charged VAT when service is compolsury which in this place is but apart from that they also have separately on the bill voluntary tips . (so does voluntary tips paid by customers ) gets VAT too ?