Tipping Calculator UK: Work Out Tips And Share Them Fairly
Tipping in the UK is less fixed than in some countries, but there's still a fair bit of maths involved. Customers want to know what 10% or 12.5% comes to. Owners and managers need to share a tip pot between staff fairly, and since October 2024 they have to follow the law when they do it.
This calculator does both. Use the first part for a single bill and the second to split a tip pot between your team.
The interactive calculator is loading. If it doesn't appear, the worked examples below show the same sums.
Part one: tip on a bill
Enter:
- The bill total
- Tip percentage, with quick buttons for 10%, 12.5% and 15%
- Number of people splitting the bill
- Whether service is already included, so you don't tip twice
You'll see the tip, the total and each person's share.
Worked example
A £84 dinner for four with a 12.5% tip:
| Amount | |
|---|---|
| Tip | £10.50 |
| Total | £94.50 |
| Each person pays | £23.63 |
Rounding means the four shares add up to £94.52, so one person can pay 2p less.
Part two: sharing a tip pot between staff
Enter:
- The total tip pot for the period
- Each person's name and hours worked
- Optional weightings, if your written policy gives some roles a bigger share
The calculator divides the pot by total weighted hours, then multiplies by each person's weighted hours.
Share = pot x (person's hours x weighting) / total weighted hours
Worked example
A £600 weekly pot shared by hours, no weightings:
| Staff member | Hours | Share |
|---|---|---|
| A | 40 | £200.00 |
| B | 30 | £150.00 |
| C | 30 | £150.00 |
| D | 20 | £100.00 |
| Total | 120 | £600.00 |
That's £5 per hour worked.
What UK law says about tips
The Employment (Allocation of Tips) Act came into force on 1 October 2024. In short:
- Employers must pass on all tips, gratuities and service charges to workers, with no deductions other than tax.
- Tips must be allocated fairly, and paid by the end of the month after the customer left them.
- Businesses that regularly receive tips need a written tipping policy that staff can see.
- Records of tips and how they were shared must be kept for three years. Workers can ask to see them.
The law applies to card tips as well as cash. It's one reason many businesses now use a tip feature on the card machine, which keeps a clear record.
Note that this calculator only does the maths. Whether a split is fair depends on your policy and the government's statutory code of practice, so read that before deciding on weightings. Tax and National Insurance on tips depend on how they're paid, so speak to your accountant or check HMRC guidance.
Card machine fees on tips
Tips added on a card machine are part of the payment, so providers charge their usual rate on the full amount. Under the law, you can't deduct those card fees from the tips you pass on to staff. Factor them into your costs instead.
For example, on a £10 tip on a 1.75% reader, the card fee is about 18p. Over a year of busy service, that adds up, but it's a cost of doing business.
Tipping features on card machines
Most card machines let customers add a tip before they pay. Look for:
- Preset percentages that you choose
- A custom amount option
- Tip reports by staff member or shift
- The option to turn tipping off for counter sales
Our guides to card machines for restaurants and card machines for pubs and bars compare the options.
Pros of card tipping
- Clear records for the law
- Customers who don't carry cash can still tip
- Easy to share by hours
Cons
- Card fees apply to the tip
- Some customers feel pressured by prompts
Who this calculator is for
Diners splitting a bill, and owners or managers of restaurants, cafés, pubs, salons and hotels who share tips between staff.
FAQs
How much should I tip in the UK?
There's no fixed rule. Around 10% to 12.5% is common in restaurants when service isn't included. Check the bill first, because many add a service charge.
Can my employer keep some of the tips?
No. Since 1 October 2024 employers must pass on all tips to workers, with no deductions except tax.
Can card fees be taken out of tips?
No. The law doesn't allow deductions other than tax.
When do tips have to be paid?
By the end of the month after the month the tip was paid by the customer.
Do I need a written tipping policy?
Yes, if your business regularly receives tips. Staff must be able to see it.
How long must tip records be kept?
Three years.