The cost-of-living crisis means that tips have become an important way for Staff and Salon Owners to increase their earnings and encourage staff retention.

According to Government Statistics, 80 per cent of UK tipping is now occurring on card, so for Clients who ‘don’t have any cash’ or if a salon doesn’t have a suitable card system to receive tips – Stylists and Therapists would see a huge drop of 25% in their earnings.

Allocation of Tips Act 
Leading salon CRM system, Phorest, have stepped up to offer a simple digital solution to both the Salon Owner and Customer to enable Employees to successfully receive tips in compliance with the new ‘Allocation of Tips’ Act arriving in later in the year. Phorest Salon Software is one of the most trusted Salon CRM systems, with over 12,000 members, over 20 years of experience, and used in ten countries worldwide.

Act Facts
The new UK legislation ‘Tipping Act’ will make two important changes for Salon Workers such as spa, salon, or hairdressing Professionals.

• 100% of tips or service charges left by Customers are paid directly to Employees, and Employers cannot take any deductions for admin or transactional charges.
• The allocation of tips is dealt with transparently and fairly with a code of practice available to all employees, with all tips now taxable.

Tip Employees Directly
Rather than tips ending up in one distributable pot, Employees can receive their hard-earned tips direct to their bank account via the new PhorestTips system launching in June 2024.

Ideal Solution
It’s widely known that in the professional industry, Employees rely heavily on tips and appreciate the gesture for all their hard work. So, by using a compliant system that gives them the tip directly, and ensures that the salon they are employed by, is also not tax liable, is the ideal solution all round.
The Act has now completed its parliamentary process and is expected to come into force at some point in 2024.

 

 

 

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Benefits 

• NEW PhorestTips is launching in June 2024 and allows businesses and Staff to accept tips on the PhorestPay Card Terminal without the need to implement a complicated a clunky trunc system or faffy QR codes that will leave both the Customers and Salon Owners stressed and frustrated. These systems can even leave staff waiting up to 2 months for tips to be paid into their accounts.
• Employees can stay tax compliant and will be able to see records of their own tips throughout the year, so they can report these to HMRC and stay compliant with income tax laws.
• This simple system is a great incentive to boost earnings, as when customers pay for their hair or beauty service via a PhorestPay Card Terminal, they can automatically add a tip to the employee of their choice, and that tip goes immediately into their own personal bank account.

Results Show More Tips 
During the trial of the new PhorestTips system, Phorest data shows that employees receive 25% more tips through the Phorest Pay Terminals as more and more Clients no longer carry cash. So, it means more tips, and less stress for everyone whilst also solidifying staff retention for the Salon Owners too.

Learn more about the new legislation and tax compliant PhorestTips system to benefit both your Salon, Employees and Clients.
VISIT: www.salontippingcompliance.co.uk, and www.phorest.com