Quizzes & Puzzles1 min ago
Do I Need To Pay Tax
9 Answers
Hello- I work as a barista for a hugely popular company. We get left tips by our loyal customers, the manager has told us that we can’t have them as we will need to pay tax on our share - is that correct. Instead she has offered a night out, using accrued tip money but surely that’s the same? What if I don’t want to go out can’t I then have my share? Any help as also gratefully received. Thanks
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iluvmargie - All tips received in whatever form are taxable income subject to income tax.
How the tip gets to the employee may result in different treatment in terms of PAYE, NIC or VAT but must always be treated as taxable income.
Tips are only tax-free if no one tells HMRC about them but that’s tax evasion and illegal and has been the case for decades (probably since the introduction of income tax to help finance the Napoleonic Wars)
How the tip gets to the employee may result in different treatment in terms of PAYE, NIC or VAT but must always be treated as taxable income.
Tips are only tax-free if no one tells HMRC about them but that’s tax evasion and illegal and has been the case for decades (probably since the introduction of income tax to help finance the Napoleonic Wars)
there is a technical answer
and I think you need advice - try CAB
simply
o god of course it is income and you should pay tax on it. If it is direct to you then you declare it on your own tax form ( this is a public forum and so it is NOT right to say pocket it )
if it a tronc then the employer should deduct 20% and pass it onto you and the others
whatever the answer ( hence you need advice) a night out is NOT the answer as that is a benefit in kind and is also clearly income ( and I cant remember the tax position )
mgr should really know all this - hence the need for advice.
and I think you need advice - try CAB
simply
o god of course it is income and you should pay tax on it. If it is direct to you then you declare it on your own tax form ( this is a public forum and so it is NOT right to say pocket it )
if it a tronc then the employer should deduct 20% and pass it onto you and the others
whatever the answer ( hence you need advice) a night out is NOT the answer as that is a benefit in kind and is also clearly income ( and I cant remember the tax position )
mgr should really know all this - hence the need for advice.
I don't think providing meals as benefit-in-kind nullifies tax liability.
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