Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration
Home Saved articles Viewed items Login Contact Free Trial
|

Q&A: New tips and gratuities legislation

© Copyright LexisNexis 2024. All rights reserved.

30 September 2024 / Jez Howson
Issue: 4955 / Categories: Comment & Analysis
Jez Howson discusses the changes to how tips and gratuities are managed within the hospitality industry.

The Employment (Allocation of Tips) Act 2023 (E(AT)A 2023) effective from 1 October 2024 introduces significant changes to how tips and gratuities are managed within the hospitality industry.

What are the main provisions of E(AT)A 2023?

The key provision is that it will be unlawful for employers to withhold tips or service charges from their employees. The legislation mandates that 100% of the tips generated in a workplace must be distributed fairly and transparently to employees.

The background to this legislation stems from concerns over the withholding of tips by employers. An estimated £200m was being retained by companies depriving workers of their rightful earnings. This Act which affects over two million workers was introduced following a lengthy consultation process aimed at addressing this widespread issue.

Employers are now required to implement the necessary measures by 1 October 2024 as no transition...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Subscribe Now...

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

READERS' FORUM premium icon
Read All
Tax tip: Negligible value claim in a client’s tax return Readers’ forum: How can clients avoid paying large inheritance tax bill immediately? Readers’ forum: Time limits to amend returns Readers’ forum: Were repair costs capital expenditure? Readers’ forum: Can different apportionment methods be applied?
FIVE WAYS TO MAKE ACCOUNTS PRODUCTION AND TAX EASIER.
Download the exclusive Xero
free report here.

New queries
Please email any questions you might have
to: taxation@lexisnexis.co.uk.

NEWS premium icon
Read All
Agricultural and business property reliefs cut Employer National Insurance contributions to rise from April 2025 Londoners contribute the most tax in the nation Two-tier system for HMRC penalties creates unfairness Spotlight 65 highlights GDPR claims
DEADLINE DATES
CASES premium icon
Read All
Fields formed part of the garden and grounds Letter from HMRC did not constitute a pause Oral hearing to allow cross-examination Company deliberately understated sales Fixed protection 2014 revoked due to late contribution
MOST POPULAR
The critical role of data quality in tax compliance Autumn Budget 2024 Agricultural and business property reliefs cut Employer National Insurance contributions to rise from April 2025
Copyright © 2024 LexisNexis
back to top icon