Bill Tipping in the UK

Tipping is part of daily life for many industries, yet in the UK it’s often surrounded by confusion. Unlike countries where tipping is expected and even enforced, the UK has no standardised rules — but there are legal requirements around how tips are handled, taxed, and distributed.

Here’s what counts as a tip, how it appears on bills, what workers should receive, and how much is appropriate across different sectors.

What Is a Tip?

A tip is an optional amount of money given by a customer to a worker — typically in recognition of good service. It’s most common in the hospitality sector but also appears in industries like hairdressing, taxis, and food delivery.

Tips can be given in cash, by card, or added to the bill. Some venues include a service charge, which may or may not be distributed to staff in full.

What Are the Laws on Tipping in the UK?

The UK government has introduced rules to ensure fairness in how tips are handled. As of 2024, under the Employment (Allocation of Tips) Act, employers:

• Must pass on 100% of tips to staff, without making deductions

• Are required to have a written policy on how tips are distributed

• Must keep records of tips received and distributed for three years

• Cannot use tips to top up wages to meet National Minimum Wage

These rules apply to tips given directly by customers and to service charges, unless the service charge is clearly optional and not passed to staff. Employers are also encouraged to distribute tips in a fair and transparent manner — usually through a tronc system managed by staff or a third party.

How Much Tip Should Staff Receive?

There’s no set figure, but staff should receive the full value of any tip or their fair share if it’s pooled. If a discretionary service charge is added to a bill — usually around 10–15% — this should also be distributed in full, unless otherwise stated.

Tronc systems are often used in restaurants and hotels to fairly split tips between front-of-house and back-of-house staff.

Are Tips Taxed as Income?

Yes, tips are taxable in the UK — but how they are taxed depends on how they’re received.

• Cash tips given directly to staff: The worker is responsible for declaring this income and paying tax via self-assessment.

• Card tips or tips distributed via payroll: These are subject to PAYE and National Insurance, and the employer deducts the tax.

• Troncs: If tips are distributed via a tronc, PAYE is applied but usually without National Insurance, making this more tax-efficient for employees.

So while staff keep the tip, it is considered income by HMRC and needs to be taxed like any other earnings.

How Much Should Be Tipped in Different Industries?

Tipping expectations vary across industries. Here’s a quick look at what’s typical in the UK:

Restaurants:                             
If service isn’t included, tipping 10–12.5% of the bill is standard. Fine dining may expect up to 15%. If a discretionary service charge is already added, no further tip is expected — unless the service was exceptional.

Pubs and Bars:
Tipping isn’t expected at the bar. In table-service settings, a rounding up or small tip is appreciated, especially in gastropubs.

Hairdressers and Barbers:
Tipping around 10% is common, though many clients round up to the nearest fiver or tenner.

Taxis:
A tip of 5–10% is normal, or rounding up to the nearest pound for short trips.

Delivery Drivers:
Tipping £1–£3 is usual depending on the size of the order and the weather or distance involved.

Hotels:
It’s polite to tip £1–£2 per bag for porters, and a few pounds for housekeeping after a longer stay.

Keep in mind that tipping is always voluntary in the UK — but appreciated when service goes above expectations.

Final Thoughts

Tipping in the UK is less rigid than in other countries, but it’s still an important part of many workers’ income. The new laws aim to bring greater fairness, ensuring that staff receive the money intended for them without deductions.

Whether you're tipping at a restaurant or thanking your barber, understanding the etiquette and tax rules helps you support workers properly — and makes sure your money goes where it’s meant to.