• Contact us
  • About us
  • Digital edition
  • Online archive
Sunday, June 8, 2025
Cumberland and Westmorland Herald
  • News
    How can businesses combat increased pressure on cashflow and profitability?

    How can businesses combat increased pressure on cashflow and profitability?

    Penrith Players present Noel Coward’s Hay Fever

    Penrith Players present Noel Coward’s Hay Fever

    Paula Roberts’ pilgrim route to raise cash for Red Cross

    Paula Roberts’ pilgrim route to raise cash for Red Cross

    Farmers flock to North Sheep

    Farmers flock to North Sheep

    Cumbrian animal charity celebrates with dog show for opening of new kennel complex

    Cumbrian animal charity celebrates with dog show for opening of new kennel complex

    Appleby Horse Fair: Several cases of animal cruelty

    Appleby Horse Fair: Several cases of animal cruelty

    Multiple fire crews tackle roof fire in Crosby Ravensworth

    Multiple fire crews tackle roof fire in Crosby Ravensworth

    Free domestic abuse support drop-in service launches in Penrith

    Free domestic abuse support drop-in service launches in Penrith

    Penrith bar relaunched with vibrant events planned

    Penrith bar relaunched with vibrant events planned

  • Sport
    Patterdale’s Eden Eagles make history

    Patterdale’s Eden Eagles make history

    Penrith teen crowned British vault champion

    Penrith teen crowned British vault champion

    Penrith gymnasts represent North of England in finals

    Penrith gymnasts represent North of England in finals

    New boss revealed for Penrith AFC

    New boss revealed for Penrith AFC

    Penrith Panthers celebrate winning season

    Penrith Panthers celebrate winning season

    Darren Edmondson leaves Penrith AFC

    Darren Edmondson leaves Penrith AFC

    Lucy plays key role in county T20 triumph

    Lucy plays key role in county T20 triumph

    Gold for Keith in annual festival of orienteering

    Gold for Keith in annual festival of orienteering

    Cumberland and Westmorland wrestlers head to European championships

    Cumberland and Westmorland wrestlers head to European championships

  • Obituaries
  • Nostalgia
  • Online archive
  • Buy Photos
  • Buy your paper
  • North Lakes Living
No Result
View All Result
Cumberland and Westmorland Herald
  • News
    How can businesses combat increased pressure on cashflow and profitability?

    How can businesses combat increased pressure on cashflow and profitability?

    Penrith Players present Noel Coward’s Hay Fever

    Penrith Players present Noel Coward’s Hay Fever

    Paula Roberts’ pilgrim route to raise cash for Red Cross

    Paula Roberts’ pilgrim route to raise cash for Red Cross

    Farmers flock to North Sheep

    Farmers flock to North Sheep

    Cumbrian animal charity celebrates with dog show for opening of new kennel complex

    Cumbrian animal charity celebrates with dog show for opening of new kennel complex

    Appleby Horse Fair: Several cases of animal cruelty

    Appleby Horse Fair: Several cases of animal cruelty

    Multiple fire crews tackle roof fire in Crosby Ravensworth

    Multiple fire crews tackle roof fire in Crosby Ravensworth

    Free domestic abuse support drop-in service launches in Penrith

    Free domestic abuse support drop-in service launches in Penrith

    Penrith bar relaunched with vibrant events planned

    Penrith bar relaunched with vibrant events planned

  • Sport
    Patterdale’s Eden Eagles make history

    Patterdale’s Eden Eagles make history

    Penrith teen crowned British vault champion

    Penrith teen crowned British vault champion

    Penrith gymnasts represent North of England in finals

    Penrith gymnasts represent North of England in finals

    New boss revealed for Penrith AFC

    New boss revealed for Penrith AFC

    Penrith Panthers celebrate winning season

    Penrith Panthers celebrate winning season

    Darren Edmondson leaves Penrith AFC

    Darren Edmondson leaves Penrith AFC

    Lucy plays key role in county T20 triumph

    Lucy plays key role in county T20 triumph

    Gold for Keith in annual festival of orienteering

    Gold for Keith in annual festival of orienteering

    Cumberland and Westmorland wrestlers head to European championships

    Cumberland and Westmorland wrestlers head to European championships

  • Obituaries
  • Nostalgia
  • Online archive
  • Buy Photos
  • Buy your paper
  • North Lakes Living
No Result
View All Result
Cumberland and Westmorland Herald
No Result
View All Result
Home Expert advice
This article appears as part of a paid partnership with Armstrong Watson

Businesses have more time to prepare for the Tipping Act

By Matthew Hutton, accounting senior manager, Armstrong Watson

by CWH
26 June 2024
in Expert advice, News, Sponsored
A A
Share on FacebookShare on Twitter
Matthew Hutton

Hospitality businesses have more time to prepare for new rules due to come into force to ensure all ‘qualifying tips’ are fairly and wholly distributed to qualifying employees and agency workers.

The Employment (Allocation of Tips) Act 2023, referred to as the Tipping Act, will make it unlawful for employers to retain or withhold any qualifying tips (tips, gratuities and voluntary service charges).

It was due to be introduced in England, Scotland and Wales on 1 July 2024 but this date has now been pushed back to 1 October 2024. A new Code of Practice has been published and hospitality businesses must ensure they are compliant in advance of the act coming into force.

Every business with employees or agency workers who receive tips will be affected and the following steps should help in preparation for the implementation of the act:

  1. Ensure 100% of tips are passed on to staff. This includes a ban on withholding any element of the tips designed to cover a proportion of charges on card takings.
  2. Ensure that there is a fair distribution of tips. Each business is required to have a written policy governing the allocation of tips which is made available to all qualifying staff.
  3. Make staff aware of the act and your business’ policy. Inform them of any changes you are implementing as a result.
  4. Distribute all tips in line with the policy by the end of the month following the date of receipt. Normal payroll processes should be followed for tips paid by the employer, and it must be ensured that the correct tax and National Insurance deductions are made from the tips at source and passed on to HMRC.
  5. Keep an ongoing record of the allocation and distribution of tips and keep this record for a rolling period of three years from the date of receipt.
  6. Be prepared to provide a copy of the record upon request to any qualifying employee or agency worker.
  1. Businesses already operating an official tronc scheme – where a separate organised arrangement exists to distribute tips, gratuities and service charges – can continue to operate this way but will need to ensure the following:
  • The operator of the scheme (the ‘troncmaster’) meets the definition of being independent in the act.
  • The scheme itself qualifies and follows all of the new requirements in the act as listed above.

Importance of compliance

In the event of non-compliance, qualifying staff are entitled to bring a claim against the business in an Employment Tribunal. If in breach of the compensation payments of up to £5,000 could be enforced.

As well as the potential legal and financial penalties, businesses should also consider the potential reputational damage that could be done if they do not follow the new laws, and this is reported in the media.

National Minimum Wage

It is important to remember that tips do not count towards pay for National Minimum Wage (NMW) purposes.

Normal rules still apply, and all working time must be paid at the required rates excluding tips.

Mandatory change

The new legislation will be a welcome change for hospitality employees and agency workers, as it will give them peace of mind that they are receiving a full and fair allocation of tips.

For affected businesses, while this may be seen as another administrative and potential cost burden, it is important that processes are in place that comply with the new regulations.

For advice on any of the above, or to find out more about how your business might be affected, please contact Armstrong Watson on 01768 222030 or email help@armstrongwatson.co.uk

Related Posts

How can businesses combat increased pressure on cashflow and profitability?
Expert advice

How can businesses combat increased pressure on cashflow and profitability?

8 June 2025
Penrith Players present Noel Coward’s Hay Fever
Latest

Penrith Players present Noel Coward’s Hay Fever

7 June 2025
Paula Roberts’ pilgrim route to raise cash for Red Cross
News

Paula Roberts’ pilgrim route to raise cash for Red Cross

6 June 2025
Farmers flock to North Sheep
Farm and Countryside

Farmers flock to North Sheep

6 June 2025
Cumbrian animal charity celebrates with dog show for opening of new kennel complex
News

Cumbrian animal charity celebrates with dog show for opening of new kennel complex

6 June 2025
Appleby Horse Fair: Several cases of animal cruelty
Latest

Appleby Horse Fair: Several cases of animal cruelty

5 June 2025
No Result
View All Result

Stay connected

Facebook Twitter Instagram

Most popular

Former Appleby mayor Frank Harland

Former Appleby mayor Frank Harland

6 June 2025
Cumbrian animal charity celebrates with dog show for opening of new kennel complex

Cumbrian animal charity celebrates with dog show for opening of new kennel complex

6 June 2025
Patterdale’s Eden Eagles make history

Patterdale’s Eden Eagles make history

6 June 2025
Farmers flock to North Sheep

Farmers flock to North Sheep

6 June 2025
Honorary assistant bishop Geoffrey Hewlett Thompson

Honorary assistant bishop Geoffrey Hewlett Thompson

6 June 2025
How can businesses combat increased pressure on cashflow and profitability?

How can businesses combat increased pressure on cashflow and profitability?

8 June 2025
Cumberland and Westmorland Herald Logo

33 Middlegate
Penrith
Cumbria
CA11 7SY

Phone: 01768 862313
Email: news@cwherald.com

Registered in England as Barrnon Media Limited. No: 12475190
VAT registration number: 343486488

Explore

  • News
  • Sport
  • Farming
  • Property
  • Obituaries
  • Nostalgia
  • Your view

Useful links

  • Contact us
  • Photosales
  • Online archive
  • Buy your paper
  • Digital edition
  • North Lakes Living
  • Advertise
  • About us

Follow us on

© Barrnon Media Limited 2025

Terms & Conditions / Privacy Policy / Cookie Policy

This website and its associated newspaper are members of the Independent Press Standards Organisation
IPSO Logo
Review Your Cart
0
Discount
Add Coupon Code
Subtotal
Total Installment Payments
Bundle Discount
Checkout

 
0
No Result
View All Result
  • Home
  • News
  • Sport
  • Obituaries
  • Nostalgia
  • Online archive
  • more
    • North Lakes Living
    • Buy Photos
    • Buy your paper
    • About us
    • Contact us

© 2020 Cumberland & Westmorland Herald