Tips and Working Tax...

David333

In my previous job last year I was working in a restaurant where I earned tips. There was a tronc system and taxes were paid before the money was distributed between the staff ( example 6 on this document from the HMRC: http://www.hmrc.gov.uk/helpsheets/e24.pdf)...

I am trying to fill in the Working Tax credit form based on last year's income and I don't know how to declare tips. They are not on my P60... I could do a rough calculation based on the number of hours I worked but that would be net rather than gross.

Any ideas...?

CrazyRed

David333 wrote: »

In my previous job last year I was working in a restaurant where I earned tips. There was a tronc system and taxes were paid before the money was distributed between the staff ( example 6 on this document from the HMRC: http://www.hmrc.gov.uk/helpsheets/e24.pdf)...

I am trying to fill in the Working Tax credit form based on last year's income and I don't know how to declare tips. They are not on my P60... I could do a rough calculation based on the number of hours I worked but that would be net rather than gross.

Any ideas...?

From what you have said in your post above, it sounds to me as though the tips were included as part of your gross pay, and then taxed in the normal way.

On that basis, they form part of your total P60 income and the total gross figure is the one you should tell tax credits.

I can't see any reason to declare tips separately under the circumstances you describe - you'd be over-declaring your income in my opinion.

David333

CrazyRed wrote: »

From what you have said in your post above, it sounds to me as though the tips were included as part of your gross pay, and then taxed in the normal way.

On that basis, they form part of your total P60 income and the total gross figure is the one you should tell tax credits.

I can't see any reason to declare tips separately under the circumstances you describe - you'd be over-declaring your income in my opinion.

Thanks for your reply but the tips were distributed on a fortnightly basis in cash having been through the tronc system. Wages were paid weekly by PAYE. So I don't think the two figures are combined in any way...