How does the tipping act affect my beauty business?

How does the tipping act affect my beauty business?

The Tipping Act, which came into effect in October, introduced key changes for beauty business that handles tips, including salons, spas, and barbers. Compliance is essential, not only to meet legal requirements but also to protect staff and streamline operations.

What does the tipping act mean for my beauty business?

If your business accepts tips via card payments, you are now required to:

1. Pass 100% of Tips to Staff
   > Tips must go to the intended recipient, with no deductions except for tax.
2.  
3. Pay Tips on Time
   > Tips must be paid out by the end of the month following when they were received. For instance, tips collected in January must be paid by the end of February.
4.  
5. Maintain a Clear Tipping Policy
   > A fair, transparent tipping policy must be created, written in plain English, and shared with your team.
6.  
7. Store Tip Data for Three Years
   > Employees, including former staff, can request tipping data for up to three years.
8.  
9. Avoid Additional Tax Liabilities
   > If a business owner decides how tips are distributed, National Insurance contributions may apply. Letting tips flow directly to staff avoids this issue.

What about cash tips?

The legislation does not change how cash tips are handled. However, as cash use declines, providing a cashless tipping option is vital. A compliant, user-friendly solution ensures customers can tip easily, benefiting both the business and the team.

How EasyTip simplifies tipping act compliance for your beauty business

EasyTip is trusted by industry leaders like Daniel Galvin, Sassoon, Aveda, and Jo Hansford. Our platform is designed to help salons, spas, and barbers stay compliant while offering a seamless tipping experience.

Here’s how EasyTip supports your business:

• Direct-to-Staff Payments
  > Tips are paid directly to staff, removing the business from the process and avoiding VAT or National Insurance liabilities.
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• Timely Tip Distribution
  > EasyTip ensures payouts meet legal deadlines, taking the hassle out of monthly processing.
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• Tipping Policy Management
  > We help salons create robust, transparent policies and provide tools to share and update them easily.
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• Secure Data Storage
  > EasyTip stores tipping data for three years, giving staff independent access and reducing administrative burdens.
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• Additional Features
  > EasyTip also supports customer feedback, Google reviews, and detailed analytics to help businesses grow.

Why choose EasyTip?

EasyTip bridges the gap between customers and staff, ensuring tips flow directly to employees while maintaining full compliance with the new regulations. By removing the complexities of tipping, EasyTip empowers your team, rewards junior staff, and simplifies operations.

For expert guidance and a solution your team and customers will love, book a demo with EasyTip today!