logo
MENU

Employment Allocation of Tips

Date:
Category:General

If you receive tips on ‘more than an occasional’ basis, there is new legislation which is effective from October 2024, that you need to be aware of. By more than occasional, HMRC seem to deem a few tips a year as occasional and so if your business receives tips more than this, you need to put measures in place to comply with the Employment (Allocation of Tips) Act 2023.

Here are the key points you need to be aware of from this legislation:

  • The purpose of the new legislation is to ensure the fair and transparent allocation of all tips, gratuities and service charges to workers, by the following calendar month, without deductions, with the exclusion of tax. 
  • Maintain a written policy on how tips are dealt with at your place of business and ensure this policy is available to all workers.
  • Maintain a record of all tips paid at your place of business for 3 years, to which your workers have a right to request access.

If you need any further information on this legislation, please contact our payroll manager, Joe on 01623 420269 or email joseph@stopfords.co.uk

Related news

Hopefully you are already aware that HMRC have introduced legislation that requires certain individuals to keep and submit electronic records on a quarterly basis, for their business / rental income. MTD comes in to force from 6 April 2026 if your turnover / rental income or both added together exceed £50,000 and from 6 April […]

View article

Taxes Made Easy!

This guide is designed to provide you with an overview of the key tax rules from seven perspectives – that of the family; the employee; the person running their own business; the taxation of investments; disposals and CGT; property matters; and, finally, the potential liability on your estate at death. We hope you will find […]

View article
ICAEW-chartered-accountantsACCA-platinumACCA-practisingHandpickedsage-logoxero-logoquickbooks-logofreeagent-bronze-partner-badge 2023-RGB

We use cookies to ensure you get the best experience on our website. Read more in our privacy policy.