Are you prepared?

Get your salon 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 July 2024.

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

According to the legislation, employers must:

  1. Fairly allocate 100% of tips to employees
  2. Ensure appropriate taxes are paid on tips 
  3. Pay out all employee tips within one month
  4. Have a written tipping policy
  5. Maintain tipping records for three years

Employees can complain to the employment tribunal if you have 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 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

5 Reasons You’ll Love PhorestTips

Here’s how PhorestTips compares to tipping apps.

comparison company logo

EasyTIp

TipJar

StrikePay

Built specifically for the industry

Image of tick / correct for representation of True result

Image of X / Cross for representation of False result

Image of X / Cross for representation of False result

Image of X / Cross for representation of False result

Pay & tip in a single, seamless transaction

Image of tick / correct for representation of True result

Image of X / Cross for representation of False result

Image of X / Cross for representation of False result

Image of X / Cross for representation of False result

No QR code chaos for your clients

Image of tick / correct for representation of True result

Image of X / Cross for representation of False result

Image of X / Cross for representation of False result

Image of X / Cross for representation of False result

Automatically and fairly split tips between multiple service providers

Image of tick / correct for representation of True result

Image of X / Cross for representation of False result

Image of X / Cross for representation of False result

Image of X / Cross for representation of False result

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


PhorestTips is an ideal tipping solution for salon teams of all kinds,
including those that have self-employed stylists or therapists.

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Join the waitlist

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Calculate your monthly savings with PhorestTips

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*.

£500

Paid by client via

Standard card

Standard card

PhorestPay card

Cash

Paid to employee via

Payroll

Tronc scheme

PhorestTips

Cash***

Employer taxes & fees

£13.80
£100**
none
none

Employee taxes

£32.00
£20.00
£20.00
£20.00

Retained tips

£68
£80
£80
£80


* 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?

Already with Phorest?
Join the waitlist

Not yet with Phorest?
Book a demo