NIM02901 - Tips, gratuities and service charges: Whether earnings

Whether payments of tips, gratuities or service charges are earnings

Where a payment of tips, gratuities and or service charges is made to or for the benefit of an earner, those payments fall within the definition of earnings ( NIM02010). Certain payments of or in respect of gratuities are disregarded from earnings when calculating Class 1 NIC liability. See NIM02905.