Cash tips
09 June 2012, 12:43 PM
#1
Cash tips
Im a chef in restaurant and just asked my boss when wee get a cash tips
He replyed
"i had some problems with that and now my accountant said that all cash tips and credit card tips need to be linked to your wadges and taxed so now u get them every month with your wages "
How the hel he can proof how much customers left CASH tip on table?????!!!!!!
I recon he just mugin me off big time?????
Any legal advice will be verry helfull
He replyed
"i had some problems with that and now my accountant said that all cash tips and credit card tips need to be linked to your wadges and taxed so now u get them every month with your wages "
How the hel he can proof how much customers left CASH tip on table?????!!!!!!
I recon he just mugin me off big time?????
Any legal advice will be verry helfull
09 June 2012, 02:05 PM
#2
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He's right
"If customers give cash tips directly to employees or leave them on the table and individual employees keep them without any involvement from the employer, then PAYE does not apply.
It is the responsibility of the individual employee to advise HMRC of the amounts of money received. The tax will usually be recovered by an adjustment to the employee’s PAYE tax code.
PAYE must be operated on all tips paid by an employer to an employee. Responsibility for operating PAYE rests with the employer"
Basically, cash tips you stuff in your pocket it is down to you to declare and you must pay tax on.
Tips collected by the resturant and paid to you will be taxed under your PAYE
To sum up, you should pay tax on any tip
http://www.hmrc.gov.uk/helpsheets/e24.pdf
"If customers give cash tips directly to employees or leave them on the table and individual employees keep them without any involvement from the employer, then PAYE does not apply.
It is the responsibility of the individual employee to advise HMRC of the amounts of money received. The tax will usually be recovered by an adjustment to the employee’s PAYE tax code.
PAYE must be operated on all tips paid by an employer to an employee. Responsibility for operating PAYE rests with the employer"
Basically, cash tips you stuff in your pocket it is down to you to declare and you must pay tax on.
Tips collected by the resturant and paid to you will be taxed under your PAYE
To sum up, you should pay tax on any tip
http://www.hmrc.gov.uk/helpsheets/e24.pdf
09 June 2012, 02:50 PM
#3
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He's right
"If customers give cash tips directly to employees or leave them on the table and individual employees keep them without any involvement from the employer, then PAYE does not apply.
It is the responsibility of the individual employee to advise HMRC of the amounts of money received. The tax will usually be recovered by an adjustment to the employee’s PAYE tax code.
PAYE must be operated on all tips paid by an employer to an employee. Responsibility for operating PAYE rests with the employer"
Basically, cash tips you stuff in your pocket it is down to you to declare and you must pay tax on.
Tips collected by the resturant and paid to you will be taxed under your PAYE
To sum up, you should pay tax on any tip
http://www.hmrc.gov.uk/helpsheets/e24.pdf
"If customers give cash tips directly to employees or leave them on the table and individual employees keep them without any involvement from the employer, then PAYE does not apply.
It is the responsibility of the individual employee to advise HMRC of the amounts of money received. The tax will usually be recovered by an adjustment to the employee’s PAYE tax code.
PAYE must be operated on all tips paid by an employer to an employee. Responsibility for operating PAYE rests with the employer"
Basically, cash tips you stuff in your pocket it is down to you to declare and you must pay tax on.
Tips collected by the resturant and paid to you will be taxed under your PAYE
To sum up, you should pay tax on any tip
http://www.hmrc.gov.uk/helpsheets/e24.pdf
Which doesn't answer OP's question which is basically how does he know how much was actually left?
dl
10 June 2012, 09:08 AM
#6
So straight answer is he can just take half of tips to his own pocket and nobody can proof he did that right? Coz he take all money upstairs at end of night/week and "do the account" so basicly staf his pocket with "half" tips and be happy???
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10 June 2012, 10:24 AM
#8
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All tips received, in whatever form, are taxable income and subject to income tax. Cash tips are only tax-free if no one tells HMRC about them, which is tax evasion - a very serious offence.
EMPLOYERS
You cannot force employees to pool or share cash tips.
If staff operate a pooling system you must tell HMRC about it.
If you control the pooling system, national insurance will be due. If you fail to pay it, you will be held responsible by HMRC.
EMPLOYEES
If you receive your cash tips without deduction of tax, it is your responsibility to keep an accurate record and declare these annually to HMRC. If you don't, you will be held responsible for the tax plus interest and penalties.
HMRC can assess up to four years back.
The onus is on you to disprove any HMRC estimates.
10 June 2012, 12:28 PM
#9
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Unlike discretionary service charges and credit card tips, cash tips do not belong to the business or the owner of the restaurant. They belong to the member of staff to whom they have been given. If a box or a dish is used, then they belong to employees as a group, but again not to the business or owner.
All tips received, in whatever form, are taxable income and subject to income tax. Cash tips are only tax-free if no one tells HMRC about them, which is tax evasion - a very serious offence.
EMPLOYERS
You cannot force employees to pool or share cash tips.
If staff operate a pooling system you must tell HMRC about it.
If you control the pooling system, national insurance will be due. If you fail to pay it, you will be held responsible by HMRC.
EMPLOYEES
If you receive your cash tips without deduction of tax, it is your responsibility to keep an accurate record and declare these annually to HMRC. If you don't, you will be held responsible for the tax plus interest and penalties.
HMRC can assess up to four years back.
The onus is on you to disprove any HMRC estimates.
All tips received, in whatever form, are taxable income and subject to income tax. Cash tips are only tax-free if no one tells HMRC about them, which is tax evasion - a very serious offence.
EMPLOYERS
You cannot force employees to pool or share cash tips.
If staff operate a pooling system you must tell HMRC about it.
If you control the pooling system, national insurance will be due. If you fail to pay it, you will be held responsible by HMRC.
EMPLOYEES
If you receive your cash tips without deduction of tax, it is your responsibility to keep an accurate record and declare these annually to HMRC. If you don't, you will be held responsible for the tax plus interest and penalties.
HMRC can assess up to four years back.
The onus is on you to disprove any HMRC estimates.
10 June 2012, 04:25 PM
#11
Why do you assume that you're not being given everything you're entitled too?
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