Get prepared

Is your employer ready for the UK’s new tipping laws?

Here’s what you need to know

The Employment (Allocation of Tips) Act is expected to come into effect in October 2024.

The legislation applies to ’employer-received’ tips
– i.e. tips paid by card.

According to the legislation, your employer must:

  1. Fairly allocate 100% of tips to employees
  2. Ensure appropriate taxes are paid on tips. Some compliance options mean you will pay MORE TAX than others
  3. Pay out your tips within one month
  4. Have a written tipping policy available to you
  5. Maintain tipping records for three years

You can complain to the employment tribunal if your employer has not complied with the Act

Want to know more?

Download our full guide for free

Phorest is one step ahead to support you

Coming Soon… PhorestTips

Phorest makes things easier by sending your card tips straight to your account, so they are not ‘employer-received’. You’ll get your tips into your account instantly, without any additional taxes.

A Win-Win for Clients, Business Owners & Salon Employees

5 Reasons You’ll Love PhorestTips

PhorestTips is an ideal tipping solution for salon teams of all kinds,
whether you’re an employee or a self-employed stylist or therapist.

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Calculate your monthly savings with PhorestTips

Some compliance options available to your employer mean more tax for you. See how much you’ll save with PhorestTips.

Use the slider to input your average monthly tips*.


Paid by client via

Standard card

Standard card

PhorestPay card


Paid to employee via


Tronc scheme



Employer taxes & fees


Employee taxes


Retained tips


* This example assumes the employee is a basic rate tax payer – i.e. earning between £12,750 and £50,270 per year
**This is an estimate – Tronc scheme fees can vary based on salon size and intricacies of the agreement
***Does not cover tip jar / pooled tips, as these would be considered ’employer-controlled’ so fall under the tipping legislation

Want these savings?

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