Guidance

When National Insurance and PAYE is due on tips, gratuities and service charges (E24)

Use this guidance if you're an employer or are responsible for arrangements to share tips, gratuities and service charges in catering and service industries.

• From: HM Revenue & Customs
• Published: 28 March 2014
• Last updated: 5 May 2022 — See all updates

Documents

Guidance on tips, gratuities, service charges and troncs

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Details

This guidance explains how employers and anyone responsible for sharing tips (including troncmasters), should treat tips, gratuities and service charges for:

• Income Tax
• National Insurance contributions
• National Minimum Wage
• VAT

Published 28 March 2014
Last updated 5 May 2022 + show all updates

1. 5 May 2022

   A section has been added to the guide covering tips paid electronically.

2. 28 March 2014

   First published.