Clinic CRM system Phorest has introduced PhorestTips, a new digital solution designed to enable employees to receive tips in compliance with the upcoming Allocation of Tips Act.
Under the new UK legislation ‘Tipping Act’, the allocation of tips will now follow a code of practice available to all employees, with all tips now taxable. All tips or service charges left by customers will also be paid directly to employees and employers cannot take any deductions for admin or transactional charges.
Launching this month, PhorestTips allows businesses and staff to accept tips on the PhorestPay Card. The patient adds the tip to their employee of choice via a PhorestPay Card Terminal, and then it is immediately transferred into the employee’s personal bank account. To stay compliant with income tax laws, the company says employees can also view a record of their tips throughout the year to report their earnings to HM Revenue & Customs.
During the trial of the new system, Phorest data showed that employees received 25% more tips through the Phorest Pay Terminals as an increasing number of patients were no longer carrying cash.
Mark Ronayne, head of payments at Phorest, said, “By prioritising transparency, fairness and compliance with tax regulations, clinic owners can navigate the complexities of tipping practices effectively and also keep your team happy by being tax compliant, too. With solutions like our PhorestTips, clinic owners can streamline their operations and focus on what they do best – delivering exceptional service to their patients.”
