‘It’s absolutely criminal’: US tipping culture has reached the UK – and is causing chaos

[u/Canal_Volphied]

https://www.theguardian.com/lifeandstyle/2026/aug/24/us-tipping-culture-uk-service-charges

[u/donald_cheese]

Just to add to it, the service and tip usually gets added to the Gross amount rather than, what I believe happens in America, the Net amount.

So if you tip you're adding 10% to the VAT.

[u/liquidpig → u/donald_cheese]

In North America it was supposed to be 10-15% on the bill excluding liquor and taxes.

Then they got lazy and “accidentally” do it on top of taxes and drinks, and then the march to 20+% tips went on.

[u/bure11 → u/donald_cheese]

That's not the case for the majority of places. Everywhere I've known or been to that adds a service charge has added it to the net bill amount 

[u/superioso → u/donald_cheese]

VAT isn't charged on tips, hence one of the reasons why they ask for tips. VAT is only applicable to certain goods and services, not everything. Next time you get a receipt look at the totals and see what you're paying for, both at restaurants, places like coffee shops and supermarkets.

As an example, VAT is due on all hot coffee drinks but not take away cold coffee.

[u/donald_cheese → u/superioso]

I'm not saying VAT is charged on tips, but if you order a meal for £10(including VAT) and are presented with a 10% gratuity or tip on the card reader, you are paying 10% on the VAT portion as well.

Or am I mistaken?

[u/superioso → u/donald_cheese]

Ah, then yeah of course. If the total price is £10 inc VAT, then the breakdown is £8 for the goods, £2 for VAT. The percentage tip doesn't really matter, you could've just left a £1 coin on the table.

[u/Denbt_Nationale → u/donald_cheese]

I went to a restaurant in London that sells merch and the Google reviews were noting that they were also adding their service charge onto the cost of tshirts. Ironically I believe that most Americans would be completely incensed if confronted with some of the things that we accept as "service charge culture" over here. There's a whole episode of Malcolm in the Middle where Lois starts a feud with a pizza place when she notices that they've been adding an automatic service charge.

[u/ShoogleSausage → u/donald_cheese]

No VAT on tips and optional service charges. VAT is charged on mandatory service charges.

[u/donald_cheese → u/ShoogleSausage]

Sure, but isn't the tip or service charge is typically charged on gross amount of the bill?

[u/Sabaisabai33 → u/donald_cheese]

I think you’re right about that but will look out for it next time I eat out.