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Iain jones

Receiving tips from customers

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Iain jones

When receiving any tips from customers 

Do you declare it as an income? 

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Part Timer

If you classify it as a tip you have to, by law. If you class it as a gift then you don't. If it goes into your bank then I would, if they pay you by cash then I'd say it was a gift, not that I get any 😉

Edited by Part Timer

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Cleanco

I bet most customers wouldn’t tip if they knew a portion was going to the taxman. Most won’t admit it for legal reasons but it will be a very small minority that declares any cash tips as income. 

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brianbadonde

I suspect you are supposed to declare tips, but I don’t know anyone that does this!

 

I’m the same as what Cleanco said, I don’t tip if I know it’s taxed, for example at a restaurant, I never tip on the card machine as it’s going to be taxed (plus I think it’s cheeky for the card machine to be programmed to ask). If I tip it is cash to the waiter/waitress dealing with me to if I am happy with their service, hopefully to go in their own pocket. 

 

I think as well you are allowed to earn £20 week in cash with out having to declare it; pretty sure I read this on HMRC website when setting up a few years back.

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LAMS
39 minutes ago, brianbadonde said:

I suspect you are supposed to declare tips, but I don’t know anyone that does this!

 

I’m the same as what Cleanco said, I don’t tip if I know it’s taxed, for example at a restaurant, I never tip on the card machine as it’s going to be taxed (plus I think it’s cheeky for the card machine to be programmed to ask). If I tip it is cash to the waiter/waitress dealing with me to if I am happy with their service, hopefully to go in their own pocket. 

 

I think as well you are allowed to earn £20 week in cash with out having to declare it; pretty sure I read this on HMRC website when setting up a few years back.

So what you’re saying is you can earn £1040 in cash before declaring? 

 

I’m sure that doesn’t sound correct...

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Daniel Perkins

Yeah very few if any tradesman declare their tips. Wish I got tips these days, the down side of working commercially stingy gits ... got 2 bottles of wine this year, I might use them to clear the drains out the back.

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