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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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I have a question about gratuities to waiting / serving

Resolved Question:

Hello I have a question about gratuities to waiting / serving staff in restarants. If gratuities are added to the bill on an invoice which is paid via a card machine, can you tell me what is the UK PAYE treatment of such payments and any links to HMRC advice would be useful.Thank you.
Submitted: 1 year ago.
Category: Tax
Expert:  TaxRobin replied 1 year ago.

Hello and thank you for allowing me to assist you.

Expert:  TaxRobin replied 1 year ago.

How your tax is worked out, and whether you have to pay National Insurance, depends on who:

  • the tips are given to
  • decides how the tips are shared out

Tips included in card or cheque payments

If your employer pays these to you directly, they’re responsible for making sure Income Tax is paid through PAYE.

Sometimes the tips are pooled together and shared out - this is called a ‘tronc’. The person who looks after it is called the ‘troncmaster’ and they are responsible for making sure Income Tax is paid.

If your employer decides how the tips are shared out, National Insurance is due as well as tax. Your employer is responsible for making sure it’s paid through PAYE.

https://www.gov.uk/tips-at-work/tips-and-tax

Expert:  TaxRobin replied 1 year ago.

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