Goodier Smith and Watts

Devonshire House
Manor Way, Borehamwood
Hertfordshire, WD6 1QQ

Search News


Government confirms plans for all tips to go to workers

Source: Department for Business, Energy & Industrial Strategy | | 28/09/2021

The government has published its response to its 2016 consultation on tipping, gratuities, cover and service charges and has confirmed its intention to bring forward legislative measures to ensure tips, gratuities and service charges go to workers in full. The legislative measures will include:

  • requirements for employers in all sectors to not make any deductions from tips received by their staff, including admin charges, other than those required by tax law
  • requirements for employers to distribute tips in a way that is fair and transparent, with a written policy on tips, and a record of how tips have been dealt with. Employers will be able to distribute tips via a tronc, and a tip must be dealt with by no later than the end of the month following the month in which it was paid by the customer
  • provisions to allow workers to make a request for information relating to an employer’s tipping record. Employers will have flexibility in how to design and communicate a tipping record, but they should respond within four weeks
  • requirements for employers to have regard to a new statutory Code of Practice on Tipping which will support the legislation.

Where employers fail to comply with the new measures, workers will be able to bring employment tribunal claims.

The provisions will be included in the upcoming Employment Bill which will be brought forward when parliamentary time allows.



 

Latest News

New warnings from HMRC re tax fraudsters
25/11/2021 - More...
Fraudsters are continuing to target taxpayers with scam emails in advance of the 31 January 2022 deadline for submission

Teesside Freeport open for business
25/11/2021 - More...
The first of the English Freeports, Teesside, opened operations on 19 November 2021, and is expected to be followed

What is a tax calculation?
25/11/2021 - More...
A tax calculation is created by HMRC if you have not paid the right amount of tax. HMRC’s annual reconciliation of PAYE

Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the Newsletter
» Login

 

 

ICAEW-BLK RGB  

 

Save

Save

Copyright © 2021 - Goodier, Smith and Watts

Cookie Policy | Website Privacy Policy                                                                                                                                                                                                                                                         

Registered in England under the number 3724657