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Written question asked by Angus MacDonald (Liberal Democrat) on Monday, 16 June 2025, in the House of Commons. It was due for an answer on Wednesday, 18 June 2025. It was answered by James Murray (Labour) on Monday, 23 June 2025 on behalf of the Treasury.


National Insurance Contributions: Gratuities

Question

To ask the Chancellor of the Exchequer, what assessment her Department has made of the merits of the application of National Insurance contributions to tips paid by card.

Answer

The method of payment of a tip does not determine whether National Insurance is due. National Insurance is not due on tips paid directly to the worker, or where the employer has no influence in the allocation of the tips. If an employer is involved in deciding how tips are shared out, then the payment may be liable for National Insurance. If it is not a voluntary payment, then National Insurance is due.


Secondary information

Type
Written question
Reference
60272
Session
2024-26
Grouped for answer
Yes
Subjects
Gratuities National insurance contributions
Link
View this Written question on www.parliament.uk