Written Question·Treasury·UIN 16268

Gratuities: Income Tax

Tabled: 6 July 2026
Answered: 13 July 2026

Question

Uma Kumaran

Labour — Stratford 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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