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    • gbartlett1980
    • By gbartlett1980 6th Oct 16, 9:13 PM
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    gbartlett1980
    Taxes
    • #1
    • 6th Oct 16, 9:13 PM
    Taxes 6th Oct 16 at 9:13 PM
    How much tax do you pay on tips?
    Last edited by gbartlett1980; 06-10-2016 at 10:00 PM.
Page 1
    • agrinnall
    • By agrinnall 6th Oct 16, 9:38 PM
    • 15,599 Posts
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    agrinnall
    • #2
    • 6th Oct 16, 9:38 PM
    • #2
    • 6th Oct 16, 9:38 PM
    I thought Google must be broken, but no...

    https://www.gov.uk/tips-at-work/tips-and-tax
    • Dazed and confused
    • By Dazed and confused 8th Oct 16, 10:04 AM
    • 666 Posts
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    Dazed and confused
    • #3
    • 8th Oct 16, 10:04 AM
    • #3
    • 8th Oct 16, 10:04 AM
    This tax year the government has decided tax on tips will be a minimum of 0% and maximum of 45%, although those of us earning enough to pay 45% tax rarely get tips :-(

    If you are lucky it will be 0, 20, 40 or 45% and if you unlucky it will anything in between 0 and 45% (not actually say 25% but you might pay some tax at 20% and some at 40%).
    • Cook_County
    • By Cook_County 8th Oct 16, 10:30 PM
    • 2,823 Posts
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    Cook_County
    • #4
    • 8th Oct 16, 10:30 PM
    • #4
    • 8th Oct 16, 10:30 PM
    This tax year the government has decided tax on tips will be a minimum of 0% and maximum of 45%, although those of us earning enough to pay 45% tax rarely get tips :-(

    If you are lucky it will be 0, 20, 40 or 45% and if you unlucky it will anything in between 0 and 45% (not actually say 25% but you might pay some tax at 20% and some at 40%).
    Originally posted by Dazed and confused


    If collected by the restaurant the tip will be inclusive of VAT, so 20% goes to the government. If the net is paid out as employment income it should also be subject to NIC.
    • TheCyclingProgrammer
    • By TheCyclingProgrammer 9th Oct 16, 11:35 AM
    • 1,926 Posts
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    TheCyclingProgrammer
    • #5
    • 9th Oct 16, 11:35 AM
    • #5
    • 9th Oct 16, 11:35 AM
    If collected by the restaurant the tip will be inclusive of VAT, so 20% goes to the government. If the net is paid out as employment income it should also be subject to NIC.
    Originally posted by Cook_County
    If the tip/service charge is optional there shouldn't be any VAT on it.
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