TiPJAR Secures £4.5M Funding Boost to Scale Fair Tipping Across Hospitality

Posted on 24th March 202624th March 2026 by Hannah Bray

TIPJAR SECURES £4.5M FUNDING BOOST TO SCALE FAIR TIPPING ACROSS HOSPITALITY

The investment will help thousands more operators and workers manage tips and service charge as cashless tipping becomes the new norm

TiPJAR, the platform transforming how hospitality operators collect, distribute and allocate tips and service charge, has secured £4.5 million in new investment to accelerate its mission to ensure every worker receives fair, transparent and reliable access to the tips they earn. The raise cements TiPJAR’s position as the category leader in supporting hospitality companies and the people who work for them, by offering operators a simple, cost-effective and compliant way to handle tips. Since its inception in 2019, TiPJAR has now been responsible for more than £13million being invested into the modernisation of fair and transparent tipping.

The round, led by YFM Equity Partners and advised by Mountside Ventures, will enable TiPJAR to expand its team, invest further in its people, and accelerate product development as it scales its technology across the UK. In this next phase of growth, the team will also explore expansion into new markets.

Today, TiPJAR supports more than 5,000 sites across the UK, including pubs, bars, restaurants, hotels, cafes and QSR brands, and processes over £130 million in tips annually, supporting more than 75,000 hospitality workers. During a normal trading day, TiPJAR processes around 1,000 tips per minute. For workers, the platform provides faster payouts, real-time visibility and the reassurance every tip is allocated fairly.

“TiPJAR was created to give the hospitality industry a fair, transparent and reliable way to manage tips, and to help meet evolving tipping legalisation, increasing demands for transparency and changing consuming behaviour. Over the past seven years, we’ve grown rapidly and established ourselves as the market leader in this space – so much so that no other tipping-focused platform has attracted this level of financial backing. “This investment will accelerate our next stage of growth. Workers deserve every tip they make, and businesses need straightforward tools they can trust, which is exactly what TiPJAR offers. We’re now looking forward to working with YFM to support even more operators and employees.”

Ben Thomas

TiPJAR, CEO

TiPJAR has established itself as the clear market leader in a fast-growing and increasingly regulated area of hospitality operations. The team has built a highly scalable platform with strong customer adoption and a compelling value proposition for both operators and staff.” “This investment will accelerate our next stage of growth. Workers deserve every tip they make, and businesses need straightforward tools they can trust, which is exactly what TiPJAR offers. We’re now looking forward to working with YFM to support even more operators and employees.”

Kit Maclaren

YFM, Investment Director

Since launching in 2019, TiPJAR has become the most widely adopted tipping solution in hospitality. Its rapid growth has been driven by operators seeking clarity, compliance and confidence in how tips are handled, while reducing administrative burden. Beyond the back-of-house benefits, businesses embracing TiPJAR see improved employee retention, better service levels and reviews, and enhanced employee engagement – all adding greater value to the sector’s ability to nurture and retain great talent.

TiPJAR’s expertise has also seen its team advise government bodies such as the Department of Business and Trade on tipping transparency and workplace protection to ensure operators and workers remain central to policy decisions.

With fair pay, transparency and staff retention continuing to remain a challenge for hospitality operators, TiPJAR works by giving the customers a simple way to leave cashless, transparent tips, shared directly with the worker. TiPJAR’s Supertronc™️ product modernised how tronc is managed and distributed, transforming the traditional troncmaster role and helping businesses stay fully compliant while unlocking significant payroll savings.

As digital tipping grows, cash usage falls below 10%*, and new tipping legislation is set to come into force in October 2026**, TiPJAR provides operators with a compliant and easily trackable system they can rely on.

The latest funding round, which brings investment in TiPJAR to date to £11.3million, ensures even more businesses and employees are supported. At a time when hospitality businesses face growing cost pressures and navigate complex operational demands, TiPJAR gives operators a way to meet their tipping obligations without the administrative burden. TiPJAR will now work closely with YFM Equity Partners as it scales and delivers the next phase of growth.

In celebration of its latest funding round and its desire to support as many hospitality operators as possible, TiPJAR is offering 3 months free for any new business that signs up before the end of April.

More information on TiPJAR and the offer can be found on https://www.wearetipjar.com/3-months-free/

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The 2026 Autumn Budget: What It Really Means For Hospitality

Posted on 26th November 202526th November 2025 by Hannah Bray

Business

TiPJAR - Dan Hawkie, Chief Commercial Officer

Rachel Reeves has delivered her 2026 Autumn Budget, setting out a plan she says will move the UK toward a £24.6bn surplus by 2031, with inflation easing slightly next year. But for hospitality, a sector that has already weathered years of cost pressure, labour shortages and inconsistent government support, today’s announcements land with a familiar heaviness.

Once again, the sector is expected to carry more cost, navigate more complexity, and somehow keep delivering the warmth and generosity it is known for.

The Headlines That Matter

Reeves confirmed that business rate multipliers for smaller retail, hospitality and leisure properties will be permanently lowered. On the surface, that sounds like progress. But as UKHospitality quickly highlighted, the reduction is far smaller than operators had hoped for.

Kate Nicholls pointed out that the 5p discount “is only a quarter of the maximum 20p discount the government proposed last year,” warning that many businesses will still see their bills rise due to property revaluations. She echoed what many in the sector feel daily, that bricks and mortar hospitality businesses “are being taxed out” and “have been penalised by the broken business rates system for far too long”.

The government’s decision to freeze tax thresholds until 2031 also adds quiet pressure. More workers will slip into higher tax bands, even though their wages won’t stretch any further. For operators, this means tighter household budgets, slower consumer spending and reduced confidence among customers already counting every penny.

A cap on tax free salary sacrifice schemes reduces employers’ ability to offer meaningful, tax efficient benefits at a time when staff support is more needed than ever.

Alcohol duty will rise in line with inflation too, another added cost for pubs, bars and wet-led venues already operating on razor thin margins.

And then, of course, there is the rise in minimum wage.

The Minimum Wage Rise, A Challenge Hidden Inside a Headline

One of the most significant announcements was the increase to minimum wage rates.

From next April, the minimum wage for 18- to 20-year-olds will rise by 8.5 per cent, from £10 to £10.85 an hour, more than double the current rate of inflation. The national living wage for over 21s will rise by 4.1 per cent, reaching £12.71 an hour.

On paper, this looks like a win for younger workers. But within the sector, the reaction has been candid and concerned. Labour already represents more than 40 per cent of operating costs for many venues, and increases of this scale, landing all at once, make an already difficult equation even harder to balance.

This comes as ONS data shows nearly one million young people are currently not in employment, education or training. Hospitality has always been a sector that opens doors for them. It’s where countless young people get their first job, build confidence and begin careers.

Yet wage increases of this size make it harder for operators to hire and invest in the very groups society most wants to support. It is a painful contradiction: the sector most capable of reducing youth unemployment is now under greater strain to create those opportunities.

What This Means For Operators

The sentiment across the industry is understandable: today’s support is useful in places, but it isn’t transformative. It doesn’t relieve the compound pressures that hospitality has been absorbing for years.

Some business rates may fall, but revaluations will still push many bills up. Labour will cost more. Alcohol duty is rising. Salary sacrifice schemes are curtailed. Tax thresholds are frozen. And still there is no movement on VAT, energy or supply chain costs.

It means operators are being asked, yet again, to keep going, to keep delivering excellence, to keep showing resilience, while margins narrow and unpredictability grows.

Behind every headline is a real person trying to protect jobs, keep doors open and look after their team.

Why Investing in People Matters More Than Ever

This is why your people matter more than ever, not as a line on a cost sheet, but as the heart of your business.

Your people need to genuinely believe in the business. They need to feel looked after, invested in, supported, and fairly rewarded. The teams who “bleed brand blood,” who show up wholeheartedly, who advocate for your business even on your hardest days, are the teams who stay, perform and elevate the guest experience.

That doesn’t happen by accident. It happens when operators make intentional choices about how they support their teams.

Providing the kind of financial stability that helps people feel more in control of their day-to-day lives.

Offering small but meaningful benefits that make work feel that bit more sustainable.

Building a culture through consistency and action, not slogans on a wall.

And ensuring tips and tronc are handled fairly and transparently, so teams know they’re being treated with respect.

When people feel supported, they stay. They contribute. They lift the business through the toughest periods and help create the kind of guest experience that ensures longevity.

The TiPJAR View

This Budget offers a few steps forward, but it does not unwind the deep pressures the sector continues to face. Many operators will walk away today feeling more anxious than reassured, and that feeling is valid.

The operators who prioritise fairness, transparency and genuine support will be the ones who stand out in the year ahead. Not because things became easier, but because they chose to invest where it matters most.

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The Hidden Risks in Tronc Management: Why TiPJAR Refuses to Play in the Grey

Posted on 29th October 202514th January 2026 by Hannah Bray

The Hidden Risks in Tronc Management: Why TiPJAR Refuses to Play in the Grey

Because “Fair and Transparent” Isn’t Up for Debate

Since the Employment (Allocation of Tips) Act 2023 came into force, there’s been a lot of noise, opinion, and, let’s be honest, a fair amount of confusion.

Across the industry, some providers and operators have been exploring the grey areas of the new legislation – things like holiday tronc, guaranteed tronc, and even head office tronc.

At TiPJAR, we’ve made our position clear: we don’t operate in the grey. And certainly not because it’s the easy route, but because it’s the right one.

The spirit of the law: fairness and transparency

The purpose of the new law is simple: to make sure tips go to the people who earn them, and that they’re distributed fairly and transparently.

The Code of Practice that sits alongside the Act couldn’t be clearer:

“Where tips are left for a particular place of business, they should be distributed only among workers at that place of business.”

That principle underpins everything TiPJAR stands for. Once you start diverting or fixing tronc allocations – whether that’s paying head office, guaranteeing fixed amounts, or paying staff who aren’t at work – you’re no longer distributing fairly.

Because for someone to receive more, it means someone else must receive less.

The grey areas, and why we stay out of them

1. Holiday tronc

Some have suggested paying tronc to people while they’re on holiday, based on the Big Table Group tribunal case.

But that case didn’t say tronc should be paid during holiday; it said holiday pay calculations should reflect average tronc earnings, if you’re paying tronc via the same bank account and PAYE as wages.

That’s a payroll function, not a tronc distribution rule.

Some have also argued that it’s right to pay tronc whilst on holiday to smooth out the earnings over the year, a reasonable explanation but it can encourage team members to take the busiest days or weeks off because they earn the tronc for those busy periods, and you’re then taking tronc away from those that have worked their socks off to look after your guests. It also begs the question on how you manage maternity, paternity, adoption, doggy adoption, sickness, parental leave or any other format of leave.

Paying tronc to people not working at the site breaks the fundamental fairness test in the Code of Practice, and risks taking earnings away from the people who actually served the guests.

The code of practice also references the intentionality of the customer, and if you ask any general consumer that has no ties to the industry they would not expect tips to be paid to someone that is sunning themselves on the beaches in Spain or Italy – they expect these tips to go those that have genuinely impacted on the service they have received.

2. Guaranteed or fixed tronc

Fixing tronc – for example, guaranteeing £2 per hour to every server – might sound simple, but it undermines the very definition of a tronc.

A genuine tronc must be variable, based on actual service and contributions, decided independently, and distributed from a shared pot earned by the team.

If a business fixes or guarantees tronc payments, the question must be asked “who decided these roles get these fixed amounts?” – it inevitably shows employer influence, which is exactly what HMRC uses to determine NIC liability.

So not only does it fail the fairness test, but it could also mean an employee would lose their 8% NI tax break and could lead to an Employer NIC bill of 15% on all tronc payments, with potential claims dating back for up to 6 years for the business.

3. Head office tronc

Including head office or support centre staff in tronc may feel like a goodwill gesture, but it fails the most basic rule of all: only those working in the place where tips are collected should benefit.

We’ve seen a number of people confused by the wording in the legislation – but the simplest statement is in the Guidance Notes that accompanied the act:

“An employer may choose to allocate amounts paid at non-public places of business between workers at the non-public place of business and workers at one or more of the employer’s public places of business, provided that this is done fairly.”

The intention here appears to be that if a head office happens to process a payment for (say) an event booked in a site which includes a tip, it might be fair for some head office team members to share in that – for example the event manager who has been providing service to the customer booking the event – and to share some with the site that will then host the event. As long as it’s fair.

This does not mean you can do the opposite: take tips away from public facing places of business and pay them into non-public facing places of business. That is not allowed at all. Tips must be allocated between workers at the place of business where the payment was made or to which the payment is attributable.

The non-statutory guidance makes it even more clear when it states:

“The code of practice makes clear that all workers involved in directly providing service to customers should be considered in the distribution of tips. The application of this principle varies depending on the specific circumstances of the industry and employer, and the employer must determine which jobs should be included, and justify this in their policy.

Jessica is employed as a marketing manager for a group of restaurants. Jessica usually works in an office within one of the sites but does not interact with customers during service. It would likely not be permitted for Jessica to receive a share of tips collected by the restaurants, as she is not directly providing service to customers.”

When head office receives tronc, you’re effectively taking money generated by teams at site and redistributing it to people who didn’t directly provide the service experience.

Beyond being unfair, this creates clear risk:

It could be seen as employer-led allocation, triggering NIC liability.
It may also be challenged as non-compliant under the Act, since those individuals didn’t contribute to the tronc pool’s earnings.

4. Dark Kitchens

Yes, believe it or not some operators and independent troncmasters have decided that it is “fair” to distribute tips and tronc generated at sit down restaurants, with the teams that are based at delivery only kitchens. Not Central Production Kitchens that there could be reason to suggest they have impacted on service by making it more efficient for kitchen teams during service.

The clause some are using is 27E(1)(a) qualifying tips, gratuities and service charges are paid at, or are otherwise attributable to, a non-public place of business of an employer (the “non-public tips”)”

The intention of the act is that tips should only be distributable at a non-public facing place of business if the tips are either paid there (ie. dark kitchen) or “otherwise attributable to” that place. With “attributable to” meaning because the people there “directly provided service” i,e. cooked the food the customer ate, served them food or drinks.

Once again when delivery only kitchen teams receives tronc from other sites, you’re effectively taking money generated by teams that have generated the tronc and redistributing it to people who didn’t contribute to the service experience.

Beyond being unfair, this creates clear risk:

It could be seen as employer-led allocation, triggering NIC liability.
It may also be challenged as non-compliant under the Act, since those individuals didn’t contribute to the tronc pool’s earnings.

Expert perspective

Andy Hamman, founder of The Tronc Advisor and one of the UK’s leading voices on tronc compliance, said:

“The new legislation sets a clear standard for fairness. Any approach that seeks to ‘bend’ those rules such as paying tronc to staff not at the site or fixing amounts risks not only breaching the spirit of the Act, but also creating serious Employer NIC exposure. The safest and fairest tronc schemes are those that operate truly independently and transparently.”

The risks of playing in the grey

Choosing to stretch or reinterpret the legislation may feel tempting in the short term, but it exposes businesses to:

Employment tribunal claims, as workers can now challenge unfair or opaque tronc allocations.
Reputational damage, as unfair tronc practices go against the Act’s core message of fairness and transparency.
HMRC exposure, because fixed, guaranteed or employer-influenced tronc schemes are likely to be classed as wages, making them subject to NICs for both the employer and team. When that happens, the perceived benefit disappears quickly and the cost to the business can be significant. HMRC guidance suggests that if a tronc is deemed non-compliant, the employer may be held responsible for both the employer’s and the employee’s National Insurance contributions. For example, a business distributing £1 million annually through a tronc could face a bill of up to £230,000—excluding any additional penalties that might apply.

Why TiPJAR takes a zero-grey approach

TiPJAR was built by operators, to support operators and remove grey areas entirely. We operate independently of the employer, using our own PAYE system and fully transparent digital records.

That independence is what protects both sides

Operators, by ensuring robust protection against NIC liability or tribunal risk, and
Team members, by ensuring every penny is distributed fairly to those who earned it.

Dan Hawkie, Chief Commercial Officer at TiPJAR, explained:

“We’ve always said that compliance isn’t about ticking boxes, it’s about trust. The minute a business starts bending the rules or trying to find loopholes, that trust breaks down with your teams and your customers. TiPJAR exists to protect operators from that risk and to protect workers from unfairness.”

Ben Thomas, CEO of TiPJAR and one of the key industry voices referenced by the Department for Business & Trade when the Act was introduced, added:

“Our mission from day one has been to make tipping fair and transparent for everyone. The introduction of the Employment (Allocation of Tips) Act has brought long-overdue clarity, but it’s also created temptation for some to look for shortcuts. TiPJAR will never compromise on fairness, we believe doing things the right way is the only sustainable way forward for this industry.”

In summary

If an approach feels like it’s pushing the boundaries of the law, it probably is.

At TiPJAR, we don’t touch the grey because it’s not fair to the people who earn the tips, it’s not compliant under the Act’s core principles, and it exposes businesses to risk that’s entirely avoidable.

We’d rather do it right – fairly, transparently, and independently, rather than chase a shortcut that puts our clients or their teams at risk.

Disclaimer: The contents of this article are TiPJAR’s opinions only and are only intended to summarise our understanding of the subject matter and offer further clarity on some of the points and implications of the subject matter. Nothing in this article should be construed as providing legal or financial advice. TiPJAR recommends that every operator take their own independent legal and financial advice on the subject matter of this article

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Big Table Group Partners with TiPJAR to Drive Fairness, Transparency, and Compliance in Tronc Management

Posted on 29th October 202514th January 2026 by Hannah Bray

Big Table Group Partners with TiPJAR to Drive Fairness, Transparency, and Compliance in Tronc Management

Dan Hawkie, CCO TiPJAR

The Big Table Group, one of the UK’s leading restaurant operators, has announced a new partnership with TiPJAR, the award-winning independent tronc and tipping platform, to implement a fully compliant and transparent digital tronc solution across its brands.

Following an extensive review and due diligence process of multiple providers in the market, TiPJAR was selected for its independent structure, deep sector expertise, and proven reputation for driving compliance while enhancing fairness and transparency for teams.

The partnership comes at a pivotal time for the hospitality sector, as operators continue to navigate evolving legislation around tipping, tronc, and pay transparency. The collaboration will ensure that tronc is managed entirely independently of the business, protecting both operators and team members, while maintaining full compliance with HMRC guidance and the Employment (Allocation of Tips) Act 2023.

“Our people are at the heart of everything we do, and we have always been committed to ensuring they are treated fairly and rewarded transparently. We regularly review how we manage tronc across our business to uphold the highest standards of compliance, fairness, and integrity. After a comprehensive evaluation of all available solutions, TiPJAR emerged as the clear choice for this next step. Their independence, innovative technology and trusted reputation across the industry gave us complete confidence that they are the right partner to help us continue putting our employees first. This partnership ensures that our teams can have complete clarity and confidence in how tronc is managed and distributed — something that has always been core to how we operate.”

Alan Morgan

Big Table Group, CEO

“We’re incredibly proud to be partnering with Big Table Group — a business that shares our values of fairness, transparency, and doing right by their teams. Their diligence and care throughout this process have been exemplary, and it’s a huge credit to them that they wanted to take such a proactive and best-practice approach. Our mission has always been to simplify compliance while empowering teams and protecting operators. We look forward to supporting Big Table Group in setting a benchmark for how tronc should be managed across the UK hospitality sector.”

Dan Hawkie

TiPJAR, CCO

The decision follows a period of reflection across the industry after recent tribunal activity within the sector. While Big Table Group has long been committed to doing the right thing by its teams, the partnership with TiPJAR represents a renewed investment in ensuring the highest possible standards of fairness, independence, and legal compliance moving forward.

The roll-out of TiPJAR’s independent tronc solution will take place across Big Table Group’s portfolio of well-known brands, including Bella Italia, Las Iguanas, and Banana Tree, in the coming months.

About TiPJAR
TiPJAR is the award-winning, independent tronc and tipping platform that enables fair, transparent, and compliant tip distribution for hospitality teams. Built for operators and loved by staff, TiPJAR is used by thousands of venues across the UK and Europe to automate, protect, and modernise the way tips and tronc are managed.

About Big Table Group
Big Table Group operates some of the UK’s most iconic casual dining brands, including Las Iguanas, Bella Italia, and Banana Tree. With over 200 restaurants nationwide, the Group employs thousands of team members and remains committed to creating inclusive, rewarding, and transparent workplaces across the hospitality sector.

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Holiday Tronc & Holiday Pay: What Operators Need to Know – and Why Independent Payroll Matters

Posted on 25th September 202515th January 2026 by Hannah Bray

Holiday Tronc & Holiday Pay: What Operators Need to Know - and Why Independent Payroll Matters

Dan Hawkie, Chief commercial officer at TiPJAR

You may have seen recent headlines about holiday tronc and holiday pay, with some commentators even calling the impact “nuclear” for hospitality. No surprise this has caused confusion — and even the misconception that tronc should now be paid to staff while they’re on holiday.

Let’s clear that up: the tribunal did not say tronc should be paid during holiday.

What it said is this: when calculating holiday pay, employers need to factor in what a worker normally earns from tronc. In practice, that means holiday pay should include an additional amount that reflects typical tronc earnings. Importantly, this does not mean the money can or should come out of the tronc pot itself.

The Employment (Allocation of Tips) Act 2023 and its Code of Practice however, is clear: tronc must be shared fairly among staff working in the place where service charges are collected. Taking tronc away from working staff to fund holiday pay for those not at work would seem to go against both the letter and spirit of the Act.

Think about it – paying tronc on holiday doesn’t mean anyone gets more: tronc doesn’t magically grow when someone is on holiday, and 100% is always distributed. Paying tronc on holiday only changes when people get it, not how much there is or how much they get. It also risks unfairness – if some staff take more holiday, they benefit at the expense of others. Seasonal staff, who often take no holiday but are paid in lieu at the end of a contract, would lose out most.

It sounds and feels good to claim that paying tronc whilst people are on holiday is “fair” – but that reflects a misunderstanding. Tronc is always a share of what there is: if you pay it to people not working, it has to be taken away from those who are.

Those choosing to pay holiday tronc should consider the risk they run from Tribunals saying this isn’t fair to those not on holiday. The implications are also as yet unclear whether employers are expected to top up to cover tronc in other moments where an employee isn’t at work but due an amount based on their usual “wage” – whether ,maternity, paternity, sickness, compassionate or gardening leave.

The real issue highlighted by the tribunal is this:

If you’re paying tronc through your company payroll, it starts to look like “wages” when holiday pay is calculated. That could create new liabilities for employers who have been running tronc in this way.

Why this matters for operators

If tronc processed through payroll is deemed to form part of wages, employers may have to fund additional holiday pay based on an employee’s average tronc earnings. That means higher labour costs, employer NIC contributions, and potential claims for back pay.

These figures based on employers offering statutory 28 days holiday and an average 5-day working week, hence 5.6 weeks of tronc due to team members on holiday.

These are ballpark figures, but they show just how quickly liabilities can mount once employer NIC is also factored in.

What legal experts are saying

It has been reported that law firm Fieldfisher commented that the safest solution is to operate tronc through an independent payroll to ensure payments cannot be confused with wages. After years of some traditional troncmasters resisting this model, even they are now moving in this direction — but change takes time, leaving many operators exposed.

How TiPJAR protects you

Our model has always been built with independence at its core:

A completely separate payroll entity manages all tronc payments.

TiPJAR independently handles every element of tronc administration, allocation, and distribution.
Your business has no role in the calculation or payment of tronc.

This means:

Complete clarity about what is tronc and what is wages.

No additional holiday pay or NIC liability created by tronc.

Full compliance with the Allocation of Tips Act and Code of Practice.

What operators should do now

If your tronc is currently run through payroll, you should:

Audit your process — establish whether tronc could be treated as wages.
Assess potential liabilities — even rough calculations can be eye-opening.
Move to independence — whether with TiPJAR or another provider, ensure tronc is separated from payroll as soon as possible.

Final thought

The recent case law has made one thing clear: independence is no longer optional. Operators who continue to run tronc through payroll risk significant new costs and claims. Those who act now to separate tronc from payroll will not only protect themselves but also demonstrate compliance leadership in an area under increasing scrutiny.

At TiPJAR, our clients already have this protection built in. For them, the latest headlines are a reminder of why they chose us. For others, they’re a warning shot that now is the time to act.

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The Biggest Tip Split in TiPJAR History – and What It Might Be Telling Us About Hospitality in 2025

Posted on 25th April 202514th January 2026 by Hannah Bray

The Biggest Tip Split in TiPJAR History – and What It Might Be Telling Us About Hospitality in 2025

Ben Thomas, CEO at TiPJAR

Last week, we processed the highest volume of weekly tips in TiPJAR’s history.

A new high-watermark record isn’t unusual for us this past year – we’ve seemed to hit them almost every month! But this one felt different. It was the first time we’ve seen tip distribution reach a run rate of £100 million a year.

I remember doing our first-ever tip payout only a few short years ago. It was about £50 to our first 12 users, via individual manual bank transfers completed at my kitchen table whilst my endlessly understanding wife Tara read the figures from a spreadsheet! So this number for all of us at TiPJAR felt like a pretty big deal.

It’s clearly a moment for appreciation. Growth at the pace we’ve achieved is very, very hard work (that number represents nearly 500% year on year, for the record), so we’re hugely grateful to our incredible team who have worked tirelessly to realise the vision of fast, fair, transparent tipping. Equally, we are so thankful to our customers who trust us to do that for their teams, and to the tens of thousands of users we know now rely on us to get them their tips as fast as is humanly possible, week in, week out.

In parallel, though, we wonder if our journey points to something exciting happening in hospitality, around how we think about teams, motivation, appreciation, and how technology is unlocking new opportunities.

Perhaps because what we’ve learned is that any conversation about tips, service charges and how this money gets to teams is really a conversation about the intersection of strategy on three things: revenue, people and service.

Big Days and Bigger Questions

Key trading days have always mattered in hospitality—but in 2025, we’re seeing something shift. Operators seem less inclined to just hope for a strong day. They’re planning for them, optimising and engaging teams in new ways to make every moment count.

Take the Butcombe Group, who saw a 31% year-on-year sales increase this Mother’s Day. That kind of uplift is striking—but what’s driving it? Could it be that a motivated team, one that feels recognised and fairly rewarded, is key to unlocking these moments?

When team members can see their tips in real time, understand how they’re shared, and access them when they need—it makes sense that it will have a tangible impact on morale and performance – and frankly the sheer bloody minded will we so often rely on our teams bringing to make these big moments happen!

A Budget That’s Tightening the Screws

The April 2025 budget is already being felt across the sector. Increased NICs, higher National Living Wage—it’s more pressure on margins that were already thin for many. For many operators, the question isn’t just how to stick to the rules but how on earth to do whilst building something sustainable?

In this context, team retention isn’t just nice to have—it’s business-critical. And in a very tough context for everyone out there, financial wellbeing plays a huge part. According to recent research from KAM, 32% of hospitality workers are facing significant financial stress. Many are still living paycheque to paycheque.

Again, we’re seeing that tipping done well makes a massive difference. Can instant access to some regular additional income, reducing the risk of becoming reliant on credit products, payday loans, or paying to draw early from a month end pay-cheque – help bridge the gap between financial insecurity and stability?

For many, if it does, maybe it can help people view their role as the start of a career, rather than the stop-gap sometimes teams are forced to consider their hospitality role?

New Laws, New Expectations

Six months in, the new tipping legislation has started to settle into the fabric of the industry. 100% of tips must go to staff. Distribution must be transparent. What once felt like best practice is now the law.

But compliance, while essential, might only be the start. Many of the businesses we work with aren’t just looking to tick a legal box—they’re rethinking their approach entirely. They want to celebrate their teams. They want to build cultures where fair reward isn’t an afterthought and instead is seen as the way to build ever-improving service.

So we find ourselves wondering—what happens when tipping becomes strategic? When it’s woven into team engagement, brand reputation, and even recruitment? Could tipping—when done well—be one of hospitality’s most underused tools?

Can transparency around tips build more trust between operators and teams, and does that create a better customer experience? Does being served by a happy, motivated and trusting team member, proud to represent their brand, make a difference? We think it very probably does, and are building tantalising evidence to prove it—but it’s a space that deserves more exploration.

A Record That Raises More Questions Than It Answers

Yes, last week was a record-breaker for us. And yes, we are proud and we are so appreciative of everyone who has been a part of bringing our vision for a new way in tipping even closer to reality. But, it’s made us more curious too!

Why are more people tipping? Why has it become a bigger part of public consciousness than ever before? Why are some teams seeing extraordinary uplift while others struggle? What can we learn from those who are thriving—and how can we share that more widely?

At TiPJAR, we don’t pretend to have all the answers. But we’re committed to being part of the conversation, discovering them with the amazing community of operators and teams that we support. As we go, we’ll keep innovating and building, with new features like Spend & Save, and connecting our users to sources of advice and support, and doing our best to listen and learn as the industry evolves.

To every team member who gave brilliant service last week and shared in that £100m —thank you hugely for your trust. To every operator rethinking how you recognise and reward your teams—we see you and we’re here for you. And to everyone trying to build a stronger, fairer hospitality business—we’re right there with you, asking the same questions.

Here’s to many more milestones—not just for us, but for us all in the wonderful, creative, inspiring, challenging, passionate, joyous, community that is hospitality!

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The Last 12 Months at TiPJAR: Immense Growth & Exciting Times Ahead

Posted on 11th February 202514th January 2026 by Hannah Bray

The Last 12 Months at TiPJAR: Immense Growth & Exciting Times Ahead

A business insights piece by George Robinson, Chief Financial Officer at TiPJAR

When I joined TiPJAR a few months ago, I knew I was stepping into something special. A company with strong values, dedicated to supporting hospitality workers, and driven by innovation—what’s not to love? But I have to admit, as CFO, my favourite part? The numbers. Wow, what a year it’s been!

Phenomenal Growth

From December 2023 to December 2024, TiPJAR saw a 260% increase in tips being processed. That’s not just growth—that’s a game-changing leap!

This kind of expansion doesn’t happen by accident; it’s a testament to the tireless work of our team and the incredible operators who have embraced digital tipping and tronc solutions. Fullers, Vagabond, St Austell, and Robinsons are just a few of the hospitality giants who have put their trust in TiPJAR, and their commitment to fairness, transparency, and efficiency in tipping has played a huge role in this success.

Looking to the Future

The most exciting part? We’re just getting started.

Our momentum isn’t slowing down, and we have some major developments on the horizon. We’ve just announced the pre-launch of Spend & Save, an innovative new product that is set to redefine the way hospitality businesses manage and incentivize their teams.

Backed by a UK Smart Grant, this initiative represents a huge leap forward in how hospitality workers can spend and save their tips. I am excited to see the positive impact this has over the next year.

A Heartfelt Thank You

We also want to extend a huge thank you to our investors—those who have put their trust (and their money) into TiPJAR. Their belief in our mission and their support have enabled this ridiculous growth, and we couldn’t have achieved these milestones without them.

Of course, none of this would be possible without the operators who trust us to manage their tips and tronc. We take this responsibility incredibly seriously, and it’s inspiring to work alongside businesses that share our vision for a fairer, more transparent tipping culture.

And a massive shoutout to the unbelievable TiPJAR team—every single person here has contributed to this immense growth. Their dedication, passion, and relentless drive to innovate have made these achievements possible.

So, here’s to the next 12 months—if they’re anything like the last, we’re in for one hell of a ride! Stay tuned, because big things are coming.

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Navigating the 2025 Budget: What Hospitality Businesses Need to Know

Posted on 1st November 202425th January 2025 by Hannah Bray

Business

TiPJAR - Ben thomas - ceo

The recent UK budget announcement for 2025 brought both challenges and opportunities for businesses in hospitality. With a rise in the National Minimum Wage, an increase in employer National Insurance Contributions (NICs), and adjusted business rates, these changes will significantly impact the bottom line for pubs, bars, and restaurants across the country.

As a sector already operating on tight margins, hospitality businesses now face the dual task of managing higher costs while keeping their doors open and teams motivated. Let’s dive into what these changes mean for the industry and explore how businesses can adapt to stay resilient.

National Minimum Wage Increase: Supporting Your Team in Challenging Times

The budget announced a 6.7% increase in the National Minimum Wage, which will rise to £12.21 an hour from April 2025.

While this increase reflects the importance of providing workers with a fair income in light of rising living costs, it also creates new pressures for hospitality businesses. Industry commentators estimate that the cost per FTE employee will rise by around £2,500 per annum.

Labour costs already represent a substantial portion of a hospitality business’s expenses, so these changes will likely strain operational budgets even further. For employers, balancing this wage increase with a commitment to providing excellent guest experiences may require thoughtful adjustments, whether through menu pricing, operational efficiencies, or careful workforce planning.

NICs Increase and Threshold Reduction: Managing the Added Costs

From April 2025, the threshold for employer NICs will be reduced by 45% to £5,000 per annum. In addition, employer NICs will increase by 1.2%, adding over £600 in additional NICs per employee for businesses.

This adjustment impacts not only payroll expenses but also overall staffing strategies, making it even more vital for hospitality businesses to streamline operations.

Some businesses may look into more flexible staffing models, while others may choose to invest in technology that supports efficiency or offsets administrative costs. Regardless of the approach, finding solutions to navigate these added expenses will be essential.

Business Rates Relief: A Welcome Breathing Space

The budget’s 40% relief on business rates for hospitality and leisure businesses, capped at £110,000, comes as a welcome reprieve. This measure, effective from April 2025, provides some relief against rising operational costs.

For businesses eligible for this support, the additional capital could go toward staff training, technology upgrades, or even renovations to enhance the guest experience.

While this relief won’t fully offset other rising costs for many, it offers some breathing room, enabling businesses to reinvest in areas that could lead to long-term operational resilience.

Alcohol Duty Reduction: Incentivizing In-Venue Spending

The 1.7% reduction in alcohol duty on draught products is perhaps intended to encourage more in-venue spending. However, as it brings draught prices down by only around 1p per pint, most operators feel this is unlikely to make a significant impact.

That said, it may signal further incentives to encourage more foot traffic or prompt patrons to stay longer, increasing revenue per customer.

In a sector where customer experience is key, even a small duty reduction is welcome as a positive change.

Staying Resilient Through the Changes

The hospitality industry has been called upon constantly in recent years to show resilience and adaptability. So far, it has not been found wanting, and tribute must be paid to the operators and teams that ensure our restaurants, bars, cafes, pubs, and hotels continue to offer a warm welcome and brilliant experiences.

The 2025 budget brings both pressure points and some support measures. The key to moving forward, as always, is to focus on sustainable, long-term practices that strengthen businesses.

At TiPJAR, we’re here to support hospitality businesses by offering a digital tipping solution that makes tip distribution easy, transparent, and compliant. By helping businesses fairly reward their teams, TiPJAR provides a way to foster team satisfaction and retention even amid budget constraints. We believe that, with the right tools and strategies, hospitality businesses can adapt to these changes and continue to deliver the brilliant experiences that keep guests coming back!

So, let’s keep that momentum going and tackle these shifts together, creating workplaces that stay strong, inspired, and well-equipped for the future!

Reflecting On The First 7 Days Of The Fair Tips Act

Posted on 2nd October 202414th January 2026 by Angie Carney

Business

Yesterday, October 1st, 2024, marked a significant moment for everyone in the hospitality industry: the Employment Allocation of Tips Act officially came into effect. At TiPJAR, we’ve been passionate about fairness and transparency since day one, so seeing this legislation become a reality feels like a huge victory, not just for us but for all the hardworking staff out there who rely on tips.

Here’s what’s been going on at TiPJAR in the last 7 days and why we’re so excited about this change.

A Proud Moment for the Industry

When we started TiPJAR in 2019, we set out to solve one problem: making sure tips went directly to the people who earned them, with no funny business. We’ve always believed that staff should get 100% of their tips, and it’s incredibly rewarding to see this principle become law across the entire industry.

This new legislation means businesses can no longer pocket a portion of workers’ tips. It’s the kind of change that will make a real difference to the lives of so many people, and we’re proud to have been advocates for this shift from the beginning. We’ve been totally humbled by the entire country’s response to the change so far, and can’t wait to see how it affects our industry long-term.

Changes to Our Product Fees & a CAll To Action For Card COMPANIES

As part of this shift, we’ve made some changes to how some of our products work. One of our core values has always been ensuring TiPJAR is completely free for staff to use. To keep it that way, we’ve updated how fees are charged on some of our products. For example, with our Tap to Tip and PDQ solutions, we’re now making it mandatory for customers to cover transaction fees, rather than leaving it optional.

This means that when someone leaves a tip, 100% of it goes to the team, every time! It’s a small but important step in making sure everything is fair and transparent. And while these changes are new, they’ve been really well received by both staff and customers, which is a big win for everyone. You can see a breakdown of exactly how these fees are charged, by product here.

But here’s the thing—while we’ve found ways to make sure staff aren’t paying these fees, there’s a bigger issue at play. Card issuers, like Mastercard and Visa, still charge fees on tips, and we believe that needs to change. These fees don’t serve the staff, and they don’t reflect the purpose of a tip. After all, a tip is a reward for great service—it’s meant for the person who served you, not for financial intermediaries to take a slice.

We strongly believe that card issuers should reconsider and remove fees on tips. The industry has taken a massive step forward with this new law, but it would be even better if companies like Mastercard and Visa followed suit by waiving fees on these transactions. We’re committed to doing everything we can to drive those costs down, but a wider change in the system would make a huge difference to everyone in the hospitality industry.

Last-Minute Scramble by Some Operators

What’s surprised us the most over the past week is just how many businesses left their compliance to the last minute. While we’ve been working with operators for months to prepare for the new rules, many businesses only started scrambling to get ready in the final days before the deadline.

We’ve been taking on a lot of new clients, helping them get compliant quickly. It’s great to see businesses doing the right thing—even if they’re a bit late to the party—and we’re happy to help them get there! If you need some guidance on how to approach the legislation, feel free to get in touch!

Collaborating with the Government

One of the things we’re most proud of as a business is how closely we worked with the Department for Business and Trade (DBT) on the guidance for this legislation. Our CEO, Ben, was even quoted on the government’s official page about the new law, which was a fantastic moment for us as a team. You can read more about that here.

Being able to contribute to something so positive for the industry has been an incredibly rewarding experience for all of us at TiPJAR.

Staying True to Our Values

It’s no secret that some businesses are already trying to bend the rules of the new legislation. We’ve seen a few instances of troncmasters allowing several practices that clearly go against the spirit of the Act.

At TiPJAR, we’ve always put staff first, and that’s not going to change. We’ll continue to work closely with operators to ensure they’re compliant, but we’ll never compromise our core value of making sure tips go straight to the people who deserve them with total fairness and transparency.

A Huge Thanks for All the Support

We’ve been blown away by the warm reception we’ve received over the past few days. From new clients to media outlets, the response has been incredible. We were even featured on ITV News last night, which you can check out [here](https://www.itv.com/news/2024-10-01/where-will-your-tip-go-new-law-stops-businesses-pocketing-staff

We also want to take this opportunity to thank our partners, clients, and news outlets for amplifying our message of fairness and transparency. The support has been overwhelming, and we’re excited to continue playing our part in this industry transformation.

Looking Forward

The Employment Allocation of Tips Act is just the beginning of a more equitable tipping culture in the UK. At TiPJAR, we’re committed to staying at the forefront of this change, continually improving our products and ensuring that tipping remains a transparent, fair, and positive experience for everyone involved.

If you’re a business looking for help in staying compliant, we’re here to support you. Together, let’s create a better future for all workers.

The Employment (Allocation of Tips) Act is Here!

Posted on 1st October 20241st October 2024 by Hannah Bray

The Employment (Allocation of Tips) Act is Here!

Life beyond the tipping legislation: The exciting road ahead for hospitality

A Thought Leadership by Dan Hawkie, CCO of TiPJAR

As of October 1st, it’s official: The Employment (Allocation of Tips) Act is now live! The changes in the new legislation are significant, aiming to bring much-needed transparency and fairness to how tips are distributed across the hospitality sector and other tipped industries. Throughout the development of this act, TiPJAR has been collaborating closely with the Department for Business and Trade, lending our expertise to help shape a framework that truly meets the needs of both workers and businesses.

For those looking for a deeper dive into the specifics, we’ve created a range of resources you can access here. But now that the Fair Tips Act is in effect, it’s not just about compliance; it’s about embracing this change and understanding the broader benefits it brings.

A win-win for businesses and employees alike

The new tipping legislation is not just a legal obligation but a powerful opportunity for operators to build stronger, more motivated teams. Yes, there are potential penalties for non-compliance, but let’s focus on the opportunities:

Guidance: For far too long, there hasn’t been a level playing field regarding how operators manage tips or tronc, which has meant those that are doing the right thing, haven’t always reaped the rewards in the same way as operators that may have mismanaged these funds. Undoubtedly there are contentious issues with the legislation but at least everyone now must follow the same rules, and those that look after their teams fairly will inevitably come out on top.
Better attraction and retention: Fair and transparent tipping practices are not just the law now, they can also be a powerful tool to attract, engage, and retain top talent.
Cost savings: With a legitimate tronc policy in place, employers don’t pay national insurance on tips, which could save your business thousands.
A more motivated team: By utilising technology, we have a much better opportunity to enhance our tronc policies to reward better performance. With service charge now being so widely used, it has unfortunately bred complacency in pockets of our sector, which has led to diminishing service levels. By rewarding team members appropriately for working busier shifts, providing better service and selling more, this is a great opportunity to stand out from your competition.

This is Just the Beginning…

The Fair Tips Act marks a significant shift, but there are still plenty of opportunities on the horizon. At TiPJAR, we’re excited to explore new ways to enhance the benefits of tipping for both employees and employers:

A ‘bank-like’ savings pot: Imagine a separate pot where employees can save their tips with interest—like a digital piggy bank.
A digital card: Making tips go further than ever before. A dedicated card for employees to spend their tips directly, with access to hundreds of high street discounts and cashback.
Financial education: We believe in empowering employees with financial knowledge, helping them gain greater financial freedom and security.

We’re fortunate to work in a brilliant industry where we hear heartwarming stories of the impact that tips can have on people’s lives. Life beyond the legislation is an exciting place for both employers and employees, and TiPJAR will be there every step of the way to support.

So, embrace the change, explore the opportunities, and let’s work together to create a fairer, more transparent future for everyone in hospitality. Exciting times are ahead!

Millions to take home more cash as Tipping laws comes into force

Official Release from The Department for Business and Trade

Laws to ensure workers keep all of their hard-earned tips comes into effect

Changes expected to boost wages by putting £200 million back in the pockets of workers

Comes ahead of employment rights bill which will go further to strengthen workers rights and make work pay

From today [Tuesday 1^st October], millions of hard working and dedicated workers will benefit from new laws which will ensure they keep 100% of the money they have earned through tips.

Introduced through a Private Members’ Bill last year, the Employment (Allocation of Tips) Act and the statutory Code of Practice on fair and transparent distribution of tips came into force today.

These changes will require employers to pass all tips, gratuities, and service charges on to workers, without deductions.

From today, if an employer breaks the law and retains tips, a worker will be able to bring a claim to an employment tribunal.

Most employers already pass on tips to the staff who earn them; however these laws will crack down on the minority of businesses who continue unacceptable tipping practices.

Employers in the wrong could be made to pay fines or compensation to staff, with workers able to hold bosses fully accountable through employment tribunals.

The Department for Business and Trade estimates that today’s changes will mean around £200 million will be received by workers that would otherwise have been retained by these employers.

It is hoped that this will build further trust between customers and businesses, as well as create a level playing field for all businesses through the fair and transparent distribution of tips across the board.

Minister for Employment Rights Justin Madders said:

“When you tip someone for good service, you expect them to keep all their tip. They did the work – they deserve the reward.

“This is just the first step of many in protecting workers and placing them at the heart of our economy. We will be introducing further measures on tipping to ensure workers get their fair share of tips.

“Britain’s outdated employment laws require an urgent update. This Government will ensure they are fit for the modern economy and deliver on our plan to Make Work Pay.”

This government will go even further to strengthen workers rights through our Employment Rights Bill which will ensure workplace rights are fit for a modern economy, empower working people and drive economic growth.

The legislation will be delivered in close partnership with business and civil society and will strike the right the balance between improving workers’ rights while supporting businesses across the country that pay people’s wages.

Andrew Tighe, Director of Strategy and Policy at the BBPA, said:

“This new framework will introduce a level playing field for all businesses, ensuring that those who were not already passing on all tips to their staff will now be required to.

“A greater a degree of consistency and transparency when dispersing tips will benefit both existing and new staff alike.

“We would urge all operators to review the guidance and ensure their policies are compliant with the legislation.”

Ben Thomas, CEO of TiPJAR, said:

“Our hospitality and service industries are powered by a wonderfully diverse and exceptionally talented workforce. For the first time, these millions of workers can trust that tips employers collect on their behalf will always be passed to them.

As a business providing a platform to get tips to workers quickly, fairly and transparently, we wholeheartedly welcome today’s announcement. We look forward to continuing our work with the DBT and government to develop further guidance as the principles of the legislation are put into practice, supporting businesses across the sector to operate to a consistent and equitable standard in handling tips.”

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