{"id":150742,"date":"2025-02-11T11:00:00","date_gmt":"2025-02-11T11:00:00","guid":{"rendered":"https:\/\/www.phorest.com\/?p=150742"},"modified":"2025-02-11T12:26:02","modified_gmt":"2025-02-11T12:26:02","slug":"tipping-for-salon-spa-owners-a-crash-course","status":"publish","type":"post","link":"https:\/\/www.phorest.com\/gb\/blog\/tipping-for-salon-spa-owners-a-crash-course\/","title":{"rendered":"Tipping for Salon &#038; Spa Owners- A Crash Course"},"content":{"rendered":"\n<p><em>This article was originally published in the <a href=\"https:\/\/digital.creativeheadmag.com\/magazine\/reader\/273562?pageNumber=31\" target=\"_blank\" rel=\"noreferrer noopener\">February 2025 edition of Creative HEAD magazine<\/a><\/em><\/p>\n\n\n\n<p>With the introduction of the Employment (Allocation of Tips) Act in September 2024, the tipping landscape for UK salons and spas has fundamentally changed. This legislation ensures that salon and spa workers receive 100% of the tips clients leave, with fairness and transparency being the cornerstones. <\/p>\n\n\n\n<p>With 80% of tips now made by card (UK government statistics), ensuring your salon&#8217;s tipping practices can facilitate this is crucial. This ensures you&#8217;re aligning with the law while also helping to boost staff morale and offer clients a seamless way to show their appreciation.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Recap: The Basics of the Employment (Allocation of Tips) Act<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>What the Act Covers<\/strong>:<ul><li>Employers must distribute 100% of tips directly to employees.<\/li><li>Tips should be paid no later than the end of the following month.<\/li><li>Applies to both card and cash tips, provided the employer is directly involved in the transaction, e.g. a tip jar at the front desk or accepting tips into a business bank account.<\/li><li>Employers cannot deduct fees (e.g., for admin or transaction charges).<\/li><\/ul><\/li><li><strong>Fair Allocation<\/strong>:<ul><li>An employee tipping policy is mandatory and should be provided to all staff.<\/li><li>Covers all staff linked to the salon, including client-facing and back-office employees.<\/li><\/ul><\/li><li><strong>Exclusions<\/strong>:<ul><li>Self-employed workers\u2019 entitlement is unclear in the Act, but likely follows similar principles.<\/li><li>Cash tips received directly by staff are exempt from the Act&#8217;s provisions.<\/li><\/ul><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Technology is the Future of Tipping<\/strong><\/h2>\n\n\n\n<p>Technology, like <a href=\"https:\/\/www.phorest.com\/features\/cashless-tipping\/\" target=\"_blank\" rel=\"noreferrer noopener\">PhorestTips cashless tipping feature<\/a>, can be a game-changer in this space.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Streamlined Operations<\/h3>\n\n\n\n<p>A salon software-integrated tipping feature, like PhorestTips, automates the distribution of card tips, ensuring compliance without additional admin work. With tips sent directly to staff bank accounts, salon owners no longer need to manually handle or allocate tips. This saves time, eliminates potential errors, ensures fairness and maintains 100% compliance with new legislation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Employee Benefits<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>When asked in our recent survey on tipping, 81% of respondents* said they would like an easier way to take digital tips. Staff receive tips immediately via technology like PhorestTips, making digital tips quicker, easier, and more reliable for salon teams.&nbsp;<\/li><li>Avoids National Insurance deductions, increasing take-home pay.<\/li><li>Transparent records for tax compliance.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Client Behaviour<\/h3>\n\n\n\n<p>Clients want to show appreciation to their salon service providers. According to our data, the average tip in the UK now represents <strong>14% of the average transaction value (\u00a360)<\/strong>. By not offering clients a way to pay this via card, you could be missing out on a huge amount of potential revenue for your team<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Proven Impact<\/h3>\n\n\n\n<p>PhorestTips has facilitated <strong>over 260k <\/strong>transactions since launch, amounting to a total value of <strong>over \u00a32m<\/strong>. These figures highlight the significant financial benefits the system brings to salon staff.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Rapid Adoption<\/h3>\n\n\n\n<p>Over 1,000 UK salons now actively use PhorestTips, benefitting over 5,000 individual salon staff members &#8211; growing daily. The quick uptake underscores the demand for a seamless, compliant tipping solution.<\/p>\n\n\n\n<p>Helen Massimo, owner of HM Hairdressing in the UK, highlights the impact of PhorestTips on her salon:<br><em>&#8220;Switching on PhorestTips on our PhorestPay terminal has seen our stylists take an average of \u00a3500 extra home a month! By embracing it, we&#8217;ve not only created a better experience for our clients but motivated our staff at the same time.&#8221;<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>My Tips for Success&nbsp;<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Highlight the Long-Term Value of Tips<\/strong>:<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/www.phorest.com\/blog\/what-would-stylists-therapists-do-with-25-more-tips\/\">We asked salon staff based in the UK &amp; Ireland<\/a> what they would spend an extra 25% in tips on. The top 3 answers were:<br>#1 holidays \ud83c\udfd6\ufe0f<br>#2 mortgage \ud83c\udfe1<br>#3 everyday expenses&nbsp;<br>Encourage your team to outline their financial goals and use tips to reach them faster.<br><\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Be Transparent<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Share your tipping policy with staff and clients.<\/li><li>Update it regularly and ensure compliance with the <a href=\"https:\/\/salontippingcompliance.co.uk\/\">Act<\/a>.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Leverage Technology<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Use solutions like PhorestTips to manage and distribute tips efficiently.<\/li><li>Educate staff on how to maximise tips using the technology.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Educate on Tax Compliance<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Help employees understand their tax obligations regarding tips.<\/li><li>Provide resources or organise sessions to guide staff on completing their tax returns, using the HMRC&#8217;s tools and resources.<\/li><li>Share links to HMRC guides and online calculators to make the process easier and reduce stress during tax season.<\/li><\/ul>\n\n\n<div class=\"align wp-block-bannercta\">\n\n\n<div class=\"relative lg:mb-10 overflow-hidden bg-green-dark\" >\n  <div class=\"container py-16 px-12 lg:py-24 flex items-center  justify-center  flex-wrap relative z-10\">\n   <div class=\"w-full mr-0 mb-6 md:mr-12 md:mb-0  md:w-2\/3 \" >\n   <h2 class=\"text-white mb-2 text-3xl text-center md:text-left lg:text-4xl\" style=\"color:white;\"><p>Interested in getting PhorestPay &amp; PhorestTips for your salon, spa, or clinic?<\/p>\n<\/h2>\n  \n  <\/div>\n        <a href=\"mailto:pay@phorest.com\" style=\"color:white; text-decoration:none;\"  target=\"\" class=\"rounded btn-demo-cta button bg-red px-8 text-white hover:bg-red-lighter w-full lg:w-auto lg:mr-5 rounded-none lg:rounded demo-cta\" data-ol-has-click-handler=\"\">\n      Get in touch\n    <\/a>\n      <\/div>\n<\/div>\n\n\n<div>\n  <div class=\"acf-innerblocks-container\"><\/div>\n<\/div>\n<\/div>\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This article was originally published in the February 2025 edition of Creative HEAD magazine With the introduction of the Employment (Allocation of Tips) Act in September 2024, the tipping landscape for UK salons and spas has fundamentally changed. This legislation ensures that salon and spa workers receive 100% of the tips clients leave, with fairness &hellip; <a href=\"https:\/\/www.phorest.com\/gb\/blog\/tipping-for-salon-spa-owners-a-crash-course\/\">Continued<\/a><\/p>\n","protected":false},"author":40093,"featured_media":145227,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1299,12678,1295],"tags":[13206,2856,13738,13210,13209,13211],"class_list":["post-150742","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-management","category-payment-security-gb","category-staff-management","tag-phoresttips-gb","tag-salon-tax-gb","tag-salon-tax-compliance","tag-tipping-compliance-gb","tag-tipping-laws-gb","tag-tipping-policy-gb"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Tipping for Salon &amp; 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