Am I paying the right tax?

Modified on Wed, 17 May 2023 at 04:30 PM

Tips are taxable and where your employer collects your tips, this tax has to be deducted from the tips before they are paid to you. However, another benefit of SuperTronc is that you won't have any other deductions - no National Insurance to pay and nothing else deducted.  This is because we're not your employer and the funds we pay you are not wages but tips, so all we have do is correctly account for income tax.  This is all you should pay out of your tips.


When you join SuperTronc, we have to start you off on a BR (basic rate) tax code.  For most of you this will be correct. 


Once we start submitting information to HMRC they'll let us know if this needs to change. If you're a higher earner, paying 40% tax, we might have to withhold more and in a rare case if you owe back tax to HMRC we might have to withhold 50%. 

Week by week, we'll still have to withhold some of your tips for tax (the maximum we can make available weekly is 80%) but if your tax code changes you'll see the change on your payslip next month, have a different tax calculation and any difference to what we've withheld will be credited to your TiPJAR Wallet.




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