Income Tax: Gratuities
(asked on 24th November 2025) - View Source
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if her department will conduct an assessment into the feasibility of exempting tips from income tax.
This question was answered on 2nd December 2025
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 the workplace. More information on how tips are taxed can be found here: Tips at work: Tips and tax - GOV.UK'.
The Chancellor will announce any changes to the tax system at fiscal events in the usual way.