Tips! Taxi Drivers! and Brain Ache

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    (Previously added to pre2006 forum by accident)

    I am hoping someone can help me with a question someone has asked me in relation to employed Taxi Drivers (not self employed).

    At our authority (for as long as I can remember) we have added an amount for tips to all employed taxi drivers incomes. In effect they show us their wages for £50 p/w and we take this as £65 (we add £15 tips).

    Someone has asked me for the regulation allowing us to do this and I cant find anything.

    Someone else who has worked here for longer than me (poor soul) seems to think it was a discretionary decision taken many years ago, but once again I cannot find anything allowing this.

    Is there any regulation that allows us to add an amount to the income of taxi drivers for tips.

    Or have we robbed the honest, hard working and truthful taxi drivers by believing in something passed down from generation to generation of assessors


    There is nothing in the regs per se.

    You are just saying you do not believe that they are telling the truth. I think you are in trouble with the amount, a flat rate like that is pretty arbitrary. Nope, I cannot think of anything better!

    Although if none of ’em have tried to challenge it before now its ods on you’ve grossly underestimated the level of tips they receive.


    Just posted this on the other board:

    To add in tips you would be relying on Reg 27(1)(a) of the HBR 2006 – “by estimating the amount which is likely to be his [i:ee18fa1ef6]average[/i:ee18fa1ef6] weekly income”. You also need to use Reg 35, which defines earnings. If you are satisfied that a tip constitutes a “bonus” (Reg 35(1)(a)) then you can add a reasonably assumed amount in respect to tips. However, I would strongly suggest that assuming tips at the rate of 30% is not realistic.


    Wherever I go in the UK, there are plenty of taxis around; from Kings Cross to Brighton to Edinburgh. Yet these poor souls earn just £65 per week? £6.50 per day and £2 a day tip?

    The last taxi I got cost me £14 for about three miles.

    A new taxi costs over £20,000 and sales are at record levels. Something strange here?

    Me cynical? Never.

    Quote from taxi blog:

    “London is absolutely heaving with work at the moment and it was “one in one out” everywhere.

    “We’ll have to make a detour via a cash point as you insist on charging these ridiculous prices” Me? It’s not my fault she lives where she lives and that they decided to go to Hatch End first. We arrived at her house and the meter read £144.80. She handed over £150 and asked for a receipt. Not knowing if I was getting a tip (I wouldn’t expect one in this case) I started getting her change ready. “You might as well keep that as you’ve had all my other money” she said. I felt like I should say something but thought to my self “she’ll be gone in a few seconds, don’t say anything” I gave her the receipt and she said “good night” in a frosty voice. Was I bothered? Nah”.


    You are of course talking about Taxi drivers and not mini cab drivers. There is a vast difference there.

    Kevin D


    It’s an old hobby horse, but….

    If you are drawing an inference about income / cap etc, the legal authority is [b:ed886e40cf]R(H) 3/05[/b:ed886e40cf]. However, if your LA is simply making the addition as a “policy” without considering the merit(s) of each case, then you can expect a problem or two at Tribunal.



    Thanks for the replys.

    The authority has applied tips to all taxi drivers (except those who are just employed for school runs) for as long as I have been here and we have never had any problems at all.


    Here’s a link to HM Revenues and Customs guide to self-employed taxi-drivers income:


    Section 6 covers tips. I know this isn’t regulations, but it could be seen as sound guidance.

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