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sir in one of the questions in BPP, a gratuity payment from client was 500pounds and shown as taxable benefit in full. now my doubt is had this figure been below 250pounds(upper threshold for gifts by 3rd parties-goodwill gesture in relation to employment and services offered), we would have left this gratuity payment aside(as in EXEMPTED from taxes)??
would you bolster that argument?
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yes sir its an interesting question. can you please answer this? because i think what noah is saying is right. ‘Cause simply because the gratuity is over 500pounds that it was assessable in full.
An employee is assessable on all income deriving from employment other than that which is specifically exempt and this assessment includes gratuities from customers and for which there is no exemption limit of £250.
The £250 exemption relates to the gift of goods or vouchers exchangeable for goods not to a cash gratuity.
Whether the gratuity was less than £250 does not matter – a gratuity / tip of £10 made to a waiter / waitress is taxable.
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