I think my tax is wrong!

Modified on Sat, 29 Jul 2023 at 03:05 AM

Like any payroll, we have to follow HMRC’s instructions. It’s not up to us how much tax you pay, and we can’t make changes. HMRC instruct us regarding what tax to deduct from you, and only they can change it. 
 
Remember that your tips are earned on top of your other income; everyone in England, Wales and Northern Ireland (it works differently in Scotland) is allowed to earn up to £12,570 (as of 2023) per year before they start paying tax at 20%. So, if you work part time and earn about this amount you may find that you pay less or no tax on your wages, but still have to pay tax at a full 20% on your tips because they are earnings over and above your tax free allowance. 

 

However, if you think you might be paying the wrong amount of tax, please let us know. We’ll be able to check whether your tax looks right and if there’s something amiss, we can guide you through contacting HMRC to ask them to make a change for you. 
 
If you want to learn more, HMRC publish some great information here: https://www.gov.co.uk/income-tax-rates   

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