pay a tip? How much?

So if the customer gives you a bottle of whiskey can you piss into a jiffy bag the morning after drinking it and post it to HMRC?

Reply to
ARWadsworth
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That would be viewed as taking the mickey......

Reply to
John Williamson

Thanks. I knew about the gift element which is what made me wonder. I have no idea if the man declares all of the cash payments for tax. It's not something you would ask about. He is a really straightforward person, so I suspect he might. I just wanted to be able to write on the envelope "Gift - not part of payment for your work" or somesuch and be sure it would make a difference. Looks like it does.

Reply to
Peter Scott

The gift has to be unsolicited and not connected with a commercial transaction. I could give you a tenner, and it would be tax free, but if you had done some paid work for me recently, it would be taxable.

In practice, a builder won't normally be asked about tips, so, while he is required under the law to declare them, as is the recipient of gifts under the inheritance tax scheme, what the taxman isn't told, he won't know, especially if a declaration is made of some arbitrary amount. If the taxman is feeling vindictive, on the other hand, he can even count the value of the free cups of tea and biscuits that clients have supplied, and backdate it for as long as he wants to, up to the limit, which, last I heard, was about twenty years.

One example of how daft the system is, is the way that one of the motorway service area chains will sell staff a meal for a penny. By doing this, they have to pay the taxman the VAT on the penny. If they gave the meal to the staff member, they would have to pay the VAT on the full retail value, and the staff member would also have to pay income tax on the full retail value of the meal.

Reply to
John Williamson

Seven years.

Reply to
Huge

It's a hoot isn't it? Instead of costing up seven years cups of tea, I wish the HMRC would get the b***ers who salt their money away overseas and avoid tax altogether. I'd love to dump Vodafone for what they've done, but can't because theirs is the only network that works where I live.

Reply to
Peter Scott

Perhaps the State should steal a little less of our money in the first place?

Reply to
Huge

Huge ( snipped-for-privacy@nowhere.much.invalid) wibbled on Tuesday 08 March 2011 14:25:

^^^ waste

I am the happiest person in the world to pay taxes if it is being used reasonably well - better IMHO than giving it to private companies, hell I would nationalise the entire insurance racket starting with motor insurance (there is a precendent for that).

But when I see the gov pissing it away on windmills, illegal/undesireable wars/paying off fatcats - then I am rather less inclined to give it with warm feelings!

Reply to
Tim Watts

That too.

Insurance isn't a free market.

In my opinion, about 90% of what the State steals is wasted.

Reply to
Huge

Why? high social taxation of income and corporations always drives the companies away, and their workforces.

The answer is to tax the spend, not the earn.

50% VAT on luxuries, and no income or corporation tax.. would make UK labour almost competitive again.
Reply to
The Natural Philosopher

Exactly.

I don't want a 200 grand a year head councillor. I want ten 20 grand a year bin men.

I don't want 30 people involved in preparing a strategy plan. I want 10 people in the planning department saying 'no, and that's final, because no one in that area wants it, OK?'

Reply to
The Natural Philosopher

It's not the recipient who has to keep track of gifts for inheritence tax, it's the giver. When you die, your executor has to list for HMRC every gift you made in the last seven years of your life. It's a pain in the neck for the executors.

Robert

Reply to
RobertL

Only if the giver has given more than =A33000 over all gifts in any year.

Reply to
Dave Liquorice

Totally agree. But it's wrong that the rich can escape tax whilst the rest of us pay through the nose. Let's have a bit more fairness.

Reply to
Peter Scott

I've had a few people who, pleased with the job & been given a bill for say £90, make the cheque out for £100. Not quite the idea :-)

Reply to
The Medway Handyman

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