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ELIZABETH McKEOWN and ROBERT BROCKWELL consider the effect of the Revenue's new guidance on the National Insurance treatment of tips.
ELIZABETH McKEOWN and ROBERT BROCKWELL consider the effect of the Revenue's new guidance on the National Insurance treatment of tips.
THE ALERT READER will have noticed that the much-trumpeted Inland Revenue leaflet E24 providing guidance on the National Insurance and PAYE treatment of tips and gratuities was quietly withdrawn from the Revenue's website at some stage this autumn. Occasional rumblings in the press suggested that new guidance was on its way and hinted at its possible contents; see for instance the Daily Telegraph 4 January 2004. The Revenue has now issued its updated guidance on tips and gratuities in the revised leaflet E24 which was published on its website on 10 February 2005.
In brief payments of or in respect of tips gratuities and discretionary service charges are exempt from NICs as long as one of the following conditions is met:
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
