§ 39. Lieut.-Colonel Bromley-Davenport
asked the Chancellor of the Exchequer what are the present instructions given to inspectors of taxes with regard to taking into account for Income Tax assessment purposes the personal and voluntary payments made by customers and clients by way of tips and gratuities to employees in hotels, restaurants and other catering establishments.
§ Mr. R. A. Butler
Tips of this kind are chargeable to Income Tax and tax offices have instructions to arrange that the appropriate tax is collected.
§ Lieut. - Colonel Bromley - Davenport
Since it has always been the practice—[HON. MEMBERS: "Speak up."] Keep 1100 quiet you Lobby fodder. Since it has always been the practice for the Inland Revenue to regard tips and gratuities as part of the assessable income of the catering staff, surely it is only reasonable that employers should equally be allowed to take personal and voluntary payments into account when assessing their total remuneration?