Petition · past parliament

Abolish income tax on voluntary tips

Rejected 11 signatures

What the petition asks

We want the Government to abolish income tax on voluntary tips paid in cash or electronically.
This should include direct tips as well as pooled tips where proprietor is not involved in decision making on how tips are distributed.
Tips are voluntary gifts given to individuals for good service therefore should be treated as such and given tax exempt status.

The reduction of cash use in society is affecting cash tip earnings.

Growing number of proprietors refuse card tip processing due to the cost and PAYE administrative burden resulting in loss of income from tips.

Due to complicated HMRC guidlines on tip pooling, individuals and staff are at risk of accidental tax evasion.
Now more than ever industry needs support.

Why it was rejected

There was already a petition about this issue. Duplicates are rejected so signatures collect in one place.

You may wish to sign this petition which calls for the same action: Exempt tips for staff in the hospitality industry from tax

Timeline

7 Oct 2021 Petition opened for signatures
11 Oct 2021 Rejected by the Petitions Committee

Key facts

Signatures 11
Status Rejected
Rejected 11 Oct 2021

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Source: the official petition page. Last checked 15 Jul 2026.