Written Question·Treasury·UIN 16268

Gratuities: Income Tax

Tabled: 6 July 2026
Answered: 13 July 2026

Question

Uma Kumaran

LabourStratford and Bow

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of excluding payments of service tips and gratuities via a tronc from income tax.

Answer

Dan Tomlinson
Employees pay tax on all payments that reward them for the work they do. This includes wages, tips, gratuities, or any share of a service charge that they receive. Where the employer collects the tips and pays them to employees, the employer is required t...

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