Two pints of gold top please - keep the change!

Two pints of gold top please - keep the change!

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My new client (a self employed milkman) maintains that his previous agent calculated (or estimated) his tips using an Inland Revenue approved rate.

I cannot find this anywhere. Nor can i find an adjustment on last years tax comp or within the nominal ledger. Is he milking the system?
stormrider

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By IanRiley
08th Nov 2005 10:06

Hmm
I can't see there being an Inland Revenue approved rate for something which he should be recording.

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By User deleted
08th Nov 2005 10:49

Not taxable
I thought that the tips and perks milkmen got were, ahem, of a non-monetary nature. If so, no tax to pay.

Unless of course milkmen are now charging for that service too?

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By User deleted
09th Nov 2005 00:12

There might be a figure - if employed
I know that some years ago I came across a case of employed coach drivers having their PAYE coding notices reduced by an amount of assumed / deemed tips.

Maybe something similar applies to employed milkman.

But then, we have a self-employed milkman here so coding restriction is non-applicable (unless his business is in the format of a limited company).

Maybe the previous advisor was aware of some IR assumed / deemed tips level for employed milkmen's tips and has applied it to a self-employed person's tax computations ?

I think the correct position is as has already been stated, ie. as a self employed person the tips to him arising because of his trade should be recorded as business income.


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