• Contact us
  • About us
  • Digital edition
  • Online archive
Friday, July 25, 2025
Cumberland and Westmorland Herald
  • News
    Penrith businessman bitten by dog

    Penrith businessman bitten by dog

    End of road for Cumbria Classic Coaches after 28 years

    End of road for Cumbria Classic Coaches after 28 years

    Farm diversification project set to blossom

    Farm diversification project set to blossom

    71-year-old cyclist gets on his bike to Rome

    71-year-old cyclist gets on his bike to Rome

    Appleby car park and road to close for flood work

    Appleby car park and road to close for flood work

    Road closure plans for essential bridge repairs

    Road closure plans for essential bridge repairs

    Penrith drug dealer jailed

    Penrith drug dealer jailed

    Man who damaged Penrith’s Paddington Bear appears in court

    Man who damaged Penrith’s Paddington Bear appears in court

    Mandatory payrolling of Benefits in Kind delayed

    Mandatory payrolling of Benefits in Kind delayed

  • Sport
    Teen golfer George Curry lines up with world’s best players

    Teen golfer George Curry lines up with world’s best players

    Ullswater Community College footballers make history

    Ullswater Community College footballers make history

    New management set to lead Appleby Football Club

    New management set to lead Appleby Football Club

    Success for fighting squad

    Success for fighting squad

    Penrith skipper Nicky Burns calls on team to keep winning

    Penrith skipper Nicky Burns calls on team to keep winning

    £100,000 target for new changing rooms extension

    £100,000 target for new changing rooms extension

    Medal success for Upper Eden tug-of-war team

    Medal success for Upper Eden tug-of-war team

    Eden man competes in Hyrox World Games

    Eden man competes in Hyrox World Games

    Double national triumph for Stuart Robinson

    Double national triumph for Stuart Robinson

  • Obituaries
  • Nostalgia
  • Online archive
  • Buy Photos
  • Buy your paper
  • North Lakes Living
No Result
View All Result
Cumberland and Westmorland Herald
  • News
    Penrith businessman bitten by dog

    Penrith businessman bitten by dog

    End of road for Cumbria Classic Coaches after 28 years

    End of road for Cumbria Classic Coaches after 28 years

    Farm diversification project set to blossom

    Farm diversification project set to blossom

    71-year-old cyclist gets on his bike to Rome

    71-year-old cyclist gets on his bike to Rome

    Appleby car park and road to close for flood work

    Appleby car park and road to close for flood work

    Road closure plans for essential bridge repairs

    Road closure plans for essential bridge repairs

    Penrith drug dealer jailed

    Penrith drug dealer jailed

    Man who damaged Penrith’s Paddington Bear appears in court

    Man who damaged Penrith’s Paddington Bear appears in court

    Mandatory payrolling of Benefits in Kind delayed

    Mandatory payrolling of Benefits in Kind delayed

  • Sport
    Teen golfer George Curry lines up with world’s best players

    Teen golfer George Curry lines up with world’s best players

    Ullswater Community College footballers make history

    Ullswater Community College footballers make history

    New management set to lead Appleby Football Club

    New management set to lead Appleby Football Club

    Success for fighting squad

    Success for fighting squad

    Penrith skipper Nicky Burns calls on team to keep winning

    Penrith skipper Nicky Burns calls on team to keep winning

    £100,000 target for new changing rooms extension

    £100,000 target for new changing rooms extension

    Medal success for Upper Eden tug-of-war team

    Medal success for Upper Eden tug-of-war team

    Eden man competes in Hyrox World Games

    Eden man competes in Hyrox World Games

    Double national triumph for Stuart Robinson

    Double national triumph for Stuart Robinson

  • 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

How can hospitality businesses prepare for the Tipping Act 2023

By Matthew Hutton, accounting senior manager, Armstrong Watson

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

Hospitality businesses need to prepare for new rules that are 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, received royal assent in 2023 and will make it unlawful for employers to retain or withhold any qualifying tips (tips, gratuities and voluntary service charges).

Hospitality businesses must ensure they are ready for the Act coming into force on 1 July 2024 in England, Scotland and Wales.

How to prepare for the Tipping Act

Every business with employees or agency workers who receive tips will be affected.

To help you prepare

  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 a fair distribution of tips and have a written policy which is available to all qualifying staff, making them aware of the Act and any changes you are implementing as a result.
  3. 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.
  4. 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.
  5. Be prepared to provide a copy of the record upon request to any qualifying employee or agency worker.

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:

  1. The operator of the scheme (the ‘troncmaster’) meets the definition of being independent in the act.
  2. The scheme itself qualifies and follows all of the new requirements in the act as listed above.

Importance of compliance

While the timing of the change may be unpopular with businesses – adding another administrative and potential cost burden at a time when the industry faces many other challenges – compliance is obligatory and employers need to prepare.

In the event of non-compliance, qualifying staff can bring a claim against the business in an employment tribunal, which could result in compensation payments of up to £5,000.

Businesses should also consider the potential reputational damage if they are not following the new laws and this is reported publicly.

It is also 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.

For advice on any of the above, or to find out more about how your business might be affected, please contact Armstrong Watson on 0808 1445575 or email help@armstrongwatson.co.uk

Related Posts

Penrith businessman bitten by dog
News

Penrith businessman bitten by dog

25 July 2025
End of road for Cumbria Classic Coaches after 28 years
Latest

End of road for Cumbria Classic Coaches after 28 years

25 July 2025
Farm diversification project set to blossom
Farm and Countryside

Farm diversification project set to blossom

25 July 2025
71-year-old cyclist gets on his bike to Rome
News

71-year-old cyclist gets on his bike to Rome

25 July 2025
Appleby car park and road to close for flood work
News

Appleby car park and road to close for flood work

23 July 2025
Road closure plans for essential bridge repairs
News

Road closure plans for essential bridge repairs

22 July 2025
No Result
View All Result

Stay connected

Facebook Twitter Instagram

Most popular

Appleby car park and road to close for flood work

Appleby car park and road to close for flood work

23 July 2025
71-year-old cyclist gets on his bike to Rome

71-year-old cyclist gets on his bike to Rome

25 July 2025
Man who damaged Penrith’s Paddington Bear appears in court

Man who damaged Penrith’s Paddington Bear appears in court

22 July 2025
End of road for Cumbria Classic Coaches after 28 years

End of road for Cumbria Classic Coaches after 28 years

25 July 2025
Teen golfer George Curry lines up with world’s best players

Teen golfer George Curry lines up with world’s best players

25 July 2025
Geoff Truckle played pivotal role in village life

Geoff Truckle played pivotal role in village life

25 July 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
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