The NIC position depends on the arrangements under which payments in respect of tips and service charges are made.

Tips and gratuities

The following flowchart taken from para. 12 of Booklet E24: Tips, gratuities service charges and troncs (referred to at 2.8 of the Employer’s further guide to PAYE and NICs (CWG2)) summarises the NIC position as regards tips and gratuities.

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