Tax & Accounting News

Revenue and Customs climb down on tips

05/11/2006

Only a short time after taking a harder line on tips and gratuities, HM Revenue and Customs have published more relaxed guidance, particularly where 'tronc' arrangements exist, under which tips are pooled and distributed to staff.

The main points clarified are that National Insurance contributions are only due where there is a specific contractual entitlement to tips, or where the employer has directly or indirectly allocated tips to employees. In addition, all items paid through the payroll and shown on payslips are included in earnings for minimum wage purposes.

For full details click here, or contact us for further details of the effect of the new guidance in your particular circumstances.

 

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