Usually I am pretty good at this stuff, but this is confuses me, and I couldn't get through to the HMRC to ask.
''
If you get cash tips direct from the customer without involving the employer, you'll have to pay tax on them - but not National Insurance contributions. You are responsible for telling HM Revenue & Customs (HMRC) about these tips and you'll have to show them on your Self Assessment tax return (if you fill one in). You'll need to keep a record of the tips you get so you can do this.
Most people don't have to fill in a tax return. If you don't, HMRC will estimate the tips you're likely to get and give you a tax code that will collect the tax through PAYE. Get in touch with HMRC if you think the estimates are wrong.''
from - Tax and National Insurance on tips and bonuses : Directgov - Money, tax and benefits
is anyone able to explain what this means for my staff.....how and when does the HMRC predict what tips she'll make? how do they even know what sort of job it is?
Anyone able to help?
''
If you get cash tips direct from the customer without involving the employer, you'll have to pay tax on them - but not National Insurance contributions. You are responsible for telling HM Revenue & Customs (HMRC) about these tips and you'll have to show them on your Self Assessment tax return (if you fill one in). You'll need to keep a record of the tips you get so you can do this.
Most people don't have to fill in a tax return. If you don't, HMRC will estimate the tips you're likely to get and give you a tax code that will collect the tax through PAYE. Get in touch with HMRC if you think the estimates are wrong.''
from - Tax and National Insurance on tips and bonuses : Directgov - Money, tax and benefits
is anyone able to explain what this means for my staff.....how and when does the HMRC predict what tips she'll make? how do they even know what sort of job it is?
Anyone able to help?
