Since 1927 the leading authority on tax law, practice and administration

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.

Q&A: New tips and gratuities legislation

© Copyright LexisNexis 2024. All rights reserved.

30 September 2024 / Jez Howson

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.

Issue:

4955

Categories: Comment & Analysis [1]

SourceURL:

Links:

READERS' FORUM premium icon

Readers’ forum: Impact of voluntary restitution on taxpayers Practice tip: January struggles Readers’ forum: Should we add student loan repayments in disclosure? Readers’ forum: Claiming capital allowances on equipment upgrade Readers’ forum: Is there VAT on furniture insurance?

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

High level of claim refusal may deter claimants Employers seeking ways to mitigate NI increase Registration: teething problems for private schools Non-doms not deterred by 2017 deemed domicile reforms In brief: 21 November 2024

Third slide

Deadline dates for December 2024

CASES

Office servicing business is not a trade Retrospective application of apportioning a mixed supply No infringement of human rights Failure to seek time-to-pay arrangement Overturned warrant does not guarantee return of documents

MOST POPULAR

Readers’ forum: Impact of voluntary restitution on taxpayers This week's opinion: 21 November 2024 Office servicing business is not a trade Retrospective application of apportioning a mixed supply No infringement of human rights

back to top icon