Written Question·Treasury·UIN 93882

Income Tax: Gratuities

Tabled: 24 November 2025
Answered: 2 December 2025

Question

Sorcha Eastwood

AllianceLagan Valley

To ask the Chancellor of the Exchequer, if her department will conduct an assessment into the feasibility of exempting tips 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. Whether National Insurance contributions are due on tips depends on how tips are managed in...

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