Crime and Police
Check what tips and service charges you're entitled to
Summary
If a customer directly gives you a tip in cash or through a tipping app it isn’t covered by the Tipping Act. It’s your responsibility to pay tax on tips you get directly from customers. The law applies if your employer collects tips and shares them out. For example, it might apply if you work in a: If you’re self-employed, these rules don’t apply to you. Check your employment status. The law applies to all tips that are collected and shared out by your employer. This includes tips that are paid in cash, as well as by card or through digital payment methods, like an app. The law doesn’t apply to tips you get directly from a customer, and which you don’t give to your employer - this could be as cash or through a tipping app. Your employer doesn’t have to share the tips equally between workers. They have to make sure the process is fair, clear and reasonable. For example, your employer might decide to give a bigger share of tips to staff who have worked at the company for longer. Your employer can also consider the customer’s intention. For example, if the customer wanted to tip a particular worker, your employer might choose to give all of the tip to them. When your employer makes.
Key information
- •pub, bar, cafe, or restaurant
- •people who have zero-hour contracts
- •think they haven’t shared the tips out fairly
- •can’t access their tips policy or tipping record
- •If a customer directly gives you a tip in cash or through a tipping app it isn’t covered by the Tipping Act.
- •It’s your responsibility to pay tax on tips you get directly from customers.
- •The law applies if your employer collects tips and shares them out. For example, it might apply if you work in a:
- •If you’re self-employed, these rules don’t apply to you. Check your employment status.
- •The law applies to all tips that are collected and shared out by your employer. This includes tips that are paid in cash, as well as by card or through digital payment methods, like an app.
- •The law doesn’t apply to tips you get directly from a customer, and which you don’t give to your employer - this could be as cash or through a tipping app.
- •Your employer doesn’t have to share the tips equally between workers. They have to make sure the process is fair, clear and reasonable.
- •For example, your employer might decide to give a bigger share of tips to staff who have worked at the company for longer.
Practical guidance
- •Source: [Check what tips and service charges you're entitled to](https://www.citizensadvice.org.uk/work/pay/check-what-tips-and-service-charges-youre-entitled-to/)
Related topics
Sources
- Citizens Advice — [Check what tips and service charges you're entitled to](https://www.citizensadvice.org.uk/work/pay/check-what-tips-and-service-charges-youre-entitled-to/) — `raw/citizens-advice/work-check-what-tips-and-service-charges-you-re-entitled-to.md`
This is signposting information from the Legal Shaman wiki, not legal advice. Always consult a qualified solicitor for your situation.
