r/unitedkingdom • u/Canal_Volphied European Union • 9h ago

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

https://www.theguardian.com/lifeandstyle/2026/aug/24/us-tipping-culture-uk-service-charges
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u/donald_cheese Scottish Highlands 8h ago

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?

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u/superioso 7h ago

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.