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Bpp question

This topic has 1 reply, 2 voices, and was last updated 7 years ago by Tax Tutor.

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July 3, 2018 at 1:47 pm #460823
adarsh1997
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Hello.
Need your help to tackle a BPP question.
J works for S LTD for an annual salary of £18,000. On 30 sep 2017, she received a bonus in respect of S LTD’s trading results. J also receive £500 from a customer on 1 Dec 2017 as a gratuity for the good service.
What is J’ employment income for the tax year 2017/18?
-The answer is £22,500
-Kindly explain why £500 forms part of the employment income?
July 6, 2018 at 4:11 am #461081
Tax Tutor
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I presume the bonus was £4,000. The £500 gratuity is taxable as employment income because it derives from that employment just as a waiter or waitress would be taxable on their tips / gratuities as they derive from their employment.
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