Employees Will Get To Keep All Their Tips Under New Law

👩‍⚖️ The Law 👩‍⚖️

Thanks to the Employment (Allocation of Tips) Act, companies are now legally required to ensure that 100% of all tips are passed on to employees (including those on zero-hour contracts and agency staff) without any deductions.

🧾 The Specifics 🧾

It includes both cash and card, as well as any service charges that might have been added to a customer’s bill. Employers are required to distribute the tips no later than the end of the month following the one in which they were received.

Remember: Although you are entitled to keep your tips, you will still need to pay tax on them, as usual.

1. If you’re tips are paid through work, it’ll be deducted automatically from your pay check through income tax.

2. If you keep anything directly from customers you must report it to HMRC yourself.

Check Your Contract Familiarise yourself with your employer’s tipping policy and ask for any updates to ensure you are aware of you’re entitled to.

Track Your Earnings Keep a personal log of your daily tips and wages to ensure everything adds up. This will help you spot any discrepancies quickly.

Escalate Issues If you don’t think your employer is acting right, request a detailed breakdown and escalate to an employment tribunal if necessary.

The Fastest Places To Sell A Home In The UK

🔥 Scotland Is On Fire 🔥

It is home to every single one of the 10 fastest markets! It’s the place to be if you want to sell quickly.

Carluke in Lanarkshire takes the crown, with homes selling in just 15 days. Yep, just over 2 weeks, and you're packing boxes!

🎖️ Most Improved 🎖️

Some areas are picking up speed! Stoke Newington, London has cut its selling time in 1/2 compared to last year, now averaging 40 days.

Further north in Moston, Manchester, homes are selling in 26 days—that’s 16 days faster than last year.

💬

It all started with BoE Governor Andrew Bailey, who, in a general interview with The Guardian, suggested that the MPC will get “a bit more aggressive” with cutting interest rates if inflation keeps improving as it has.

This marked a big shift from the BoE's usual cautious public stance, and the market reacted instantly.

 🔮 

After Bailey’s comments, 98% of market bets were on a rate cut of 0.25 percentage points (so down to 4.75%) in November, and 75% of investors actually expect 2 rate cuts by the end of the year.

The news led to the pound taking a dive, dropping by more than 1% against the dollar – its biggest daily fall since October 2023.

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The Solo Penalty: How Being Single Costs You More

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Renting 🔺

According to Mojo Mortgages, solo renters typically spend an extra £498 a month on essentials like rent and groceries compared to couples.

And then there’s council tax. While solo renters get a 25% discount, it’s not as much as a 50:50 split of the full price, which you would pay as a couple. The average person pays £135.69 a month, while for a couple, it’s £90.46 per person. That means a solo renter pays £45.23 more each month, even with the discount!

✈️

Travel 🔺

Single supplement = when travel companies charge a premium on things like hotel rooms, or cruise cabins, when you’re going solo.

For hotels, single travellers can expect to pay 70% to 90% of the room cost, while two people splitting the bill would only pay 50% each.

UK Debt Expert found solo travellers can pay £462 more on average for a package holiday, and a Which? study found singletons could be charged up to 87% more than couples!

🧾

Bills ✅ 

If you’re living alone, switching to a water meter could save you cash. A typical solo occupier pays around £325 a year on water, while a family of three could pay more than 2x that.

That being said, for heating and other bills heating your home is a sunk cost no matter how many people are living there…

🪜

Property Ladder 🔺

While couples can scrape together enough for a house deposit in just over 3 years on average, single buyers need a whopping 13 years to save up, according to Mojo Mortgages.

In 2023, first-time buyers needed an average deposit of £53,414 – which is £20,000 more than the average UK salary.

Student Loans

Graduates typically earn more, and student loans come with low(ish)-interest rates and flexible repayments. In the UK, what you pay back depends on what you earn making it a potentially more justifiable form of debt if it’s going to increase your earning potential.

Mortgages

Homes grow in value over time, making this an investment that puts a roof over your head and builds equity. The alternative is usually paying rent which can be as expensive but you don’t build equity in an asset.

0% Interest Deals

These can be a good way to spread costs if you're careful about hidden fees and the end-of-term rate spikes.

Car finance

Cars are expensive, and paying in cash can wipe out your emergency fund and other savings. Car finance isn’t always a good idea, but if you need a car to get to work, for example, then you might consider affordable car finance to be ‘good debt.’ However, financing a car that is significantly more expensive than a more practical option is not good debt. It's important to assess your needs realistically and choose a car that fits within your budget without stretching your finances unnecessarily.

Choose Your Focus

Before anything else, make sure you're prioritising the right debts based on the consequences of non-payment and the interest rate you’re paying. They aren’t necessarily the largest debts you have. For example:

Mortgage or Secured Loan - Repossession of your home

Rent - Eviction

Utility Bills - Disconnection

Transfer Your Existing Debt

Once your priority debts are under control, it’s time to look over your debts and work out if you can reduce the interest you’re paying.

One trick is a balance transfer—get a new credit card that pays off your old card debts at 0% interest (for a limited time). Just keep an eye on fees and ensure you pay off as much as possible before that 0% deal expires. This will help you become debt-free more quickly..., as your repayments cover the debt, not interest.

Be sure to use an eligibility checker before applying.

Option 1: Snowballing ❄️

This approach means prioritising the debt with the smallest balance.

• HOW? Order your debts from lowest to highest balance and pay them off one by one, starting with the smallest debt (remembering to keep up with minimum payments of any others).

• WHY? While you may end up paying more in the long run, the thinking goes that by starting with the smallest debts, you quickly get a sense of achievement that motivates you to keep up with your debt repayments. If there isn’t much difference in the interest rates of your debts, this method may be best.

Option 2: Highest interest first ⬆️

This approach means prioritising debts with the highest interest rates.

• HOW? Order your debts from highest to lowest interest rates and, starting with the most expensive, pay them off one by one (remembering to keep up with minimum payments of any others).

• WHY? Technically the most cost-effective strategy, this method minimises the amount of interest you end up paying. For debts with very high interest rates, this method may be best.

Check Your Credit Score For Free

Your credit score/report is managed by companies called credit reference agencies (CRAs). In the UK, the three main CRAs are Experian, Equifax, and TransUnion, and each do a slightly different calculation of your score.

Experian: You can sign up for their Free Monthly Report, or for more detail use their CreditExpert free 30-day trial, but remember to cancel before the trial ends to avoid the £14.99/month fee.

Equifax: Access your Equifax report for free via Clearscore.

TransUnion: Use the MoneySavingExpert Credit Club, which offers free access to your TransUnion report.

Bonus tip: If you're new to Experian or TransUnion, you can even get paid to check your credit score or report through cashback sites.

Understand How It Is Calculated

Payment history = whether you've paid past credit accounts on time.

Credit utilisation ratio = how much of your available credit you're using. E.g. if you have a credit limit of £1,000 and you've spent £400, your utilisation rate is 40%. Using less of your available credit (consensus says typically below 30%) is much better for your score.

Length of credit history = The longer your credit history, the better. Lenders like to see a track record of responsible borrowing. A short history gives them less information, which can lower your score.

Your Credit Mix = Using a mix of credit types, like credit cards and loans, can improve your score. It shows lenders you can manage different kinds of credit responsibly.

New credit applications = Each time you apply for credit, a "hard inquiry" is made on your report. Too many applications in a short time can hurt your score, as it suggests you might be taking on too much debt.

Building A Score From Scratch

Open a Bank Account: Start by opening a checking and savings account. This helps establish a banking history and gives lenders a view of your financial habits.

Apply for a Credit Card: Consider a beginner-friendly credit card, such as a secured card or a credit builder card. Use it for small purchases only and pay off the balance in full each month. Always use an eligibility checker before applying.

Make Timely Payments: Always pay your bills on time. Set up automatic payments to ensure you don’t miss any.

Keep Your Utilisation Ratio Low: Aim to use no more than ~30% of your available credit.

Get on the Electoral Roll: Register to vote at your current address. This helps confirm your identity and can boost your score.

Re-Building A Poor Score

Check Your Credit Report: Obtain a free copy of your credit report and review it for errors. Dispute any inaccuracies with you provider, as they could be negatively impacting your score.

Pay Off Outstanding Debts: Focus on settling any overdue accounts. Prioritise priority debts like mortgages or rent to avoid severe consequences.

Limit New Applications: Avoid applying for too much credit at once. Each application can lower your score, so focus on rebuilding your score first before seeking new credit.

Stay Put if Possible: If you can, try to avoid moving home too frequently. Lenders prefer stability, and multiple address changes may raise red flags about your financial situation.

Seek Help & Plan

Get free debt advice: If you're experiencing debt and unsure where to turn, get free advice from Step Change or National Debtline – they're there to help, and really have seen it all. Never use services offering to wipe your debt. They’re IVAs and whilst they might be the right option for some people, they can be extremely costly, and you need a proper debt advisor to guide you through the process. Debt advice should always be free.

Make It Harder To Access New Debt

Delete your card details from online sites to prevent impulse buys.

Completely avoid credit cards if you're not confident in managing your repayments.

Ask your bank to add a note to your credit file that makes it more difficult to access new credit.