Tax Notice for TipMe Collectors

Are Tips Taxable in the UK?

Yes. Under UK tax law, tips and gratuities received by workers are generally treated as taxable income and may be subject to:

• Income Tax (via Self Assessment if you are self-employed, or PAYE if tips are routed through your employer)
• National Insurance Contributions (Class 1 or Class 4, depending on your employment status)

Tips received directly from customers — such as via TipMe — are generally treated as income from your employment or self-employment and must be declared to HMRC.

What TipMe Provides

TipMe provides collectors with an annual earnings summary showing total tips received through the platform during the tax year. This summary is available in your dashboard under Analytics and can be downloaded in January following each tax year end (5 April).

This summary is for your reference only. TipMe does not report your earnings to HMRC on your behalf.

Your Responsibilities

• Register for Self Assessment if your tip income exceeds the HMRC reporting threshold
• Declare all tip income on your tax return
• Pay any Income Tax and National Insurance due by the relevant deadlines
• Keep records of your tip earnings (your TipMe dashboard helps with this)

Useful Resources

• HMRC — Tips at Work (gov.uk/tips-at-work)
• HMRC — Self Assessment Tax Returns
• Find a qualified accountant (gov.uk)