UK Salon Owners Guide to Tipping Laws, Tax and Compliance

Are you prepared?
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, employers must:
Employees can complain to the employment tribunal if you have not complied with the Act
Phorest is one step ahead to support you
Phorest makes things easier by sending each employee their tips straight to their bank account, so they are not ‘employer-received’. Stylists and therapists get their tips into their account instantly, at no cost to the business.
A Win-Win for Clients, Business Owners & Your Team
A simple, thoughtful way for clients to show their appreciation
On average, stylists and therapists see a 25% increase in tips when using an integrated PhorestPay Card Terminal
Here’s how PhorestTips compares to tipping apps.
Built specifically for the industry
Pay & tip in a single, seamless transaction
No QR code chaos for your clients
Automatically and fairly split tips between multiple service providers
Set-up fee
Free
£0
£99
£0
Monthly fee
No additional
£20
£60
£1.95
per employee
Transaction fees
(paid by the tipping customer)
5%
3.3%
6.5% + 20p
Up to
6% + 86p
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Get more info
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See how PhorestTips compares to your other options for remaining compliant.
Use the slider to input the total monthly tips taken across your employee base*.
Standard card
Standard card
PhorestPay card
Cash
Payroll
Tronc scheme
PhorestTips
Cash***
* 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
Already with Phorest?
Get more info
Not yet with Phorest?
Book a demo