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Hotel And Catering Industry

Volume 973: debated on Wednesday 14 November 1979

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asked the Secretary of State for Social Services how much each year is lost by his Department refusing to assess national insurance contributions in the hotel and catering industry on total earnings, including gratuities.

asked the Secretary of State for Social Services what is the mechanical obstacle to assessing gratuities in the hotels and catering industry for the purpose of national insurance, as is used for income tax purposes by the Inland Revenue.

Where gratuities are not handled by the employer there is no way for the employer's contributions to be assessed. It has therefore been the practice of successive Governments since 1961 to exempt gratuities from assessment for national insurance purposes.