Question about tax

[DL2G]

My dh works in a restaurant. He's part of the management team but is not paid a salary he's paid for the hours he works.

He's received a letter and a form from the Inland Revenue saying that as my Dh's tax code includes tips he's to fill in how much he makes in tips and send it to them.
I'm assuming his tax code is set like this because he's paid for the hours he works and not salary.

Dh doesn't do many waiting shifts i.e serving people as he's management. He does do the occasional shift but that's usually only about once a month if that. When he does do a waiting shift the tips are never that huge an amount as they are split between all floor staff and the kitchen staff.

I'm a bit worried about filling in this form. We're not entirely sure what to put on it, it will be a guesstimate at best as it's rare for him to do a waiting shift. But I'm worried that the tax man will turn round and say well you now have to pay tax on that and it will be this huge amount.

I'm thinking that to pay tax on tips earned though he'd need to be earning a large amount of money in tips?
Does anyone know? can anyone advise?

[DL2G]

anyone?

[TheBlonde]

He'd have to pay tax on any tips earned
Does he get any tips cash in hand or in his paycheque?

[FatThighs]

I don't know but if the tips are that small I would try and under guesstimate.

I think they do that for jobs were the pay is really bad but the tips are huge to make it fair but I think once they see how low the tips are that should be fine.

You could always put a note in saying he rarely does waiting shifts adn the tips are split,

If the worst comes to the worst and they ask you the restaurant will back you up and there you go.

I shouldn't worry too much.

p.s. I am no expert this is guesswork but I felt bad that you had no replies.

[mrsflowerpot]

I'd ring the IR up and tell them all this. They are surprisingly helpful if you approach them with this sort of query. The forms and letters are all so standardised that it's often square peg/round hole territory really.

[Judy1234]

He will be taxed on the tips even if they are £1 a year and is liable for tax for any previous years too. They have a rough idea what tips are normal and out of the ordinary low ones declared will ring warning bells so explain why they are low - rarely waits, management etc.

His tax code includes tips? What does that mean? Is his code not just the single person's allowance?