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.
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.
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.