NIM02910 – Tips, gratuities
and service charges: Meaning of gratuities and offerings
Channel 5 TV Group Limited v Peter Morehead (HM Inspector of
Taxes) SpC3070/2003
There is no definition of
gratuities or offerings within
paragraph 5 of Part 10 of Schedule 3 to the SS(C)R 2001. In
Channel 5 TV Group Limited v Peter Morehead
(HM Inspector Of Taxes) Special Commissioners concluded that
gratuity
- means a voluntary payment given in return
for services rendered where the amount of the payment depends on
the donor and where there is no obligation on the part of the donor
to make the payment
- includes, but is not restricted to a
tip.
For more information about this decision see
NICs Case Review
1/03.
See
NIM02925 about payments in respect of
tips.
