Tax – why am I paying it, and am I paying the right amount?

All tips are taxable (whether they are cash or digital!), and where your employer collects tips or an optional service charge for you, that tax has to be deducted from the tips before they are paid to you. 

 However, another benefit of SUPERTRONC is that there won’t be any other deductions made. This is because we (TiPJAR/TJ SuperTronc Ltd) are not your employer, and the funds we pay you are not wages, but tips – all we have to do is correctly account for income tax. 

To do this, when you join SUPERTRONC, you’ll always start on a BR (Basic Rate) tax code. For the majority of you, this will be correct and won’t need to change. 
 

Week by week, we have to withhold some of your tips for tax. The maximum we can make available weekly is 80%.  
 
Once we start submitting information to HMRC, they will let us know if your tax code needs to be adjusted.  This is a different tax code to the one on your main employment, and only relates to Supertronc.  HMRC will change this to make sure that overall you pay the right amount of tax.  

If you’re a higher earner HMRC may set you a tax code that means we have to withhold more and can only make make 60% or 50% of your tips available week to week.  

Once per month, when you receive your automatic pay out, we’ll calculate the correct tax you owe on all of the tips received for the payroll period based on your tax code and send you a payslip.  If we’ve withheld more than the tax you owe, the difference will be credited to your TiPJAR and we’ll let you know this on your payslip. 

If your tax code changes, you’ll sn ee that change on your payslip the following month. There will be a different tax calculation, and any difference will be credited to your TiPJAR wallet