Card tips and the UK tipping law: passing every penny to staff
By SendPay Business · · 2 min read
More customers tip by card than in cash. Since 1 October 2024, the Employment (Allocation of Tips) Act 2023 requires UK employers to pass all tips, gratuities and service charges to workers without deductions, and to share them fairly.
What the law asks of employers
- Pass on all tips, gratuities and service charges to workers, with no deductions.
- Share them fairly, following the statutory code of practice.
- Have a written tipping policy that workers can see.
- Keep records of tips and how they were shared, which workers can ask to see.
How card tips are taken
Tips can be added on a card machine before the customer taps, included on a bill, or added to an online payment or payment link. However they come in, card tips count under the law.
Tronc schemes
Some businesses use a tronc, where an independent troncmaster decides how tips are shared. It can help with fairness, but the rules on passing all tips to staff still apply.
Where SendPay fits
SendPay doesn't offer card machines. SendPay platforms let you get paid with payment links, invoices and subscriptions, alongside GBP, EUR and USD accounts and branded Visa cards, powered by licensed partners.
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Build my platform →Questions people ask
What is a payment terminal?
The card machine customers tap or insert their card into.
Payment terminals →What are card machine alternatives?
Other ways small businesses can take payments.
Card machine alternatives →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.