Do you have to declare tips in the UK?

Three ways tips reach you, and who handles the tax

• Through your employer. Card tips and service charges the business collects and pays to you go through payroll. Income tax is deducted under PAYE, and National Insurance is usually due as well. Nothing for you to declare.
• Through a tronc. A pooled scheme run by a troncmaster who is independent of the employer. Income tax is still deducted through PAYE by the tronc, but National Insurance is generally not due on tronc payments, which is why many venues use one. Again, nothing to declare.
• Directly from customers in cash. A note left on the table or pressed into your hand. This is yours to declare. HMRC's guidance is to keep a record and report it; they will usually collect the tax by adjusting your tax code, or through Self Assessment if you already file one.

What changed in October 2024

The Employment (Allocation of Tips) Act 2023 came into force on 1 October 2024. Employers must now pass on 100% of tips, gratuities and service charges to workers without deductions other than tax, must allocate them fairly under a written policy, and must keep records of how tips were distributed, which workers have a right to request. If your venue is still taking a cut, that is now unlawful. Your own record of what you were paid is how you check the employer's records against reality.

The record to keep

Cash tips by date is the minimum HMRC cares about. For your own purposes, log the whole shift: hours, wage, cash tips, card or tronc tips as paid, and any tip-out you hand to the kitchen or bar. Then Self Assessment is a sum you can do in a minute.

Tillside is set up for the UK from the first screen: pounds, weeks that start on Monday, and a tip calculator that defaults to 12.5%. Log cash and card separately, and when you need the year's cash total, export a CSV and sum one column. Export is free and covers your full history.

Not tax advice

This guide describes record-keeping. It is not tax advice, and rules change. The authoritative sources are GOV.UK's guidance on tips at work and HMRC's E24 guidance on tips, gratuities, service charges and troncs; the Low Incomes Tax Reform Group also publishes a clear plain-English explainer. If your situation is unusual, ask HMRC or an adviser.