EVERY day on our letters page our legal eagle Mike Corrigan answers your problems.
You can email letters or your legal queries to lancsletters@nqnw.co.uk. Here is today's question.
Q I work in a bar, earning £150 a week basic but as much again in tips. Do I need to tell the taxman about the tips?
A I’m afraid so. If you’re an employee your employers should make an adjustment to your tax code to take into account the extra you make from tips. If you’re self-employed the Inland Revenue will expect you to declare a certain amount from this type of income in your line of work. From the taxman’s point of view tips and wages are both regarded as taxable income. However tips, service charges, gratuities and cover charges cannot be used to make up national minimum wage pay. So eligible workers will receive at least the National Minimum Wage in base pay with any tips being paid on top.
Legal questions answered by Mike Corrigan of Farleys Solicitors LLP. Farleys have offices in: Blackburn 01254 606000; Accrington 01254 606600; Burnley 01282 718000; and Manchester 0161 8359513.
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