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Home » Topics » Job Seekers Advice » Handling tips at work

Handling tips at work

Last updated : 19 March 2010

  • This topic has 0 replies, 1 voice, and was last updated 15 years, 1 month ago by Learnist Careers.
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  • March 19, 2010 at 2:17 pm #31506
    Learnist Careers
    Participant

    What to do when accepting tips? Are tips illegal, are tips require tax?

    Any service charges, tips, gratuities and cover charges (tips etc) you are paid must be on top of your National Minimum Wage (NMW) rate. This applies no matter where you work.

    It also doesn’t matter how your employer pays you the tips, including:

        * cash at the end of a shift
        * monthly in your pay packet
        * weekly divided between all of the staff

    You should deduct the total of any tips etc from your gross pay before calculating if your pay is at least the NMW rate. Your gross pay is your pay before any deductions like tax, National Insurance or student loan.

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