Latest news with #taxBreak
Bloomberg
2 days ago
- Business
- Bloomberg
Reeves Weighs Reversing Non-Dom Inheritance Tax Changes, FT Says
Rachel Reeves is considering reversing a decision to charge inheritance tax on the overseas assets of non-doms, according to the Financial Times. The Treasury is reviewing the decision to abolish the tax break for non-domiciled residents amid a wave of wealthy individuals departing and lobbying from the City of London, the FT said, citing officials and financiers it didn't identify. The regime would be changed if it was found to aid Britain's international competitiveness, the FT said, citing one government official.
New York Times
21-05-2025
- Business
- New York Times
How ‘No Tax on Tips' Would Affect Waiters, Drivers and Diners
As a slogan in last year's presidential campaign, 'no tax on tips' was short, memorable and effective. As tax policy, it is more complex. On Tuesday, the Senate unanimously passed the No Tax on Tips Act, following through on a vow made by both President Trump and former Vice President Kamala Harris to give tipped workers a tax break on gratuities. As of now, the tax break is being incorporated into the 'One, Big, Beautiful' budget bill being negotiated by House Republicans, which would be effective from 2026 through 2028. How would these changes affect food-industry workers and diners? Here's what we've learned from interviews with tax lawyers, hospitality professors and industry groups: How are restaurant employees currently taxed on tips? The federal tax code requires that every tip be reported as income. Whether it's a $20 bill handed to a host, a line filled in on a check or a button pressed on a keypad, employees and employers are required to track and report every cent. This applies whether each server keeps the tips or the money is pooled and redistributed. What counts as a tip? In the tax code and in this legislation, the term 'cash tip' applies to tips given in bills and coins, on a credit or debit card, or via the business's electronic payment system. It has not yet been determined whether tips that go directly to a server via a service like Venmo or PayPal would qualify as cash. Service charges, which are legal in some places, are added by the business and do not count as tips. What is the proposed change? Under the legislation currently being negotiated in the House, tip income would be exempt from federal income taxes. That amount would be subtracted from reported income as an 'above the line' deduction on a tax return. That would reduce the taxpayer's adjusted gross income, the number that determines how much income tax is owed. The tips would still have to be tracked and reported. Who would get the deduction? There is debate over who would benefit from the measure, which applies to all tipped workers in the restaurant business, including not only servers but also baristas, food delivery drivers and anyone holding out a payment screen after they have sold you food. According to government data, there are more than two million tipped restaurant workers in the United States. Want all of The Times? Subscribe.
News24
07-05-2025
- Business
- News24
UK dismisses idea that British workers being 'sold out' in India trade deal
For more financial news, go to the News24 Business front page. Britain's trade minister on Wednesday defended a contentious tax break for some Indian workers agreed as part of a landmark free trade agreement with India, saying the idea that he had undercut British workers was "absolute nonsense". The trade deal, which includes a range of tariff cuts on British imports to India, also exempts some short-term workers from India from paying into Britain's social security system for three years. The exemption under the so-called Double Contributions Convention also applies to British workers in India, but while Britain barely made mention of this element of the trade deal, India hailed it as a "huge win". British opposition parties accused the government of signing up to a deal that would unfairly benefit India. "This is absolute nonsense... No-one is being undercut," Jonathan Reynolds told LBC Radio, stressing that Britain had similar agreements with 50 other nations so that workers didn't have to make contributions in two countries at one time. "If you are a business that needs to temporarily put your staff in the UK or India if you are a UK business, it's a little bit easier to do that." Reynolds also told other media that the changes would affect a "very small number" of people. Nigel Farage, the leader of Reform UK, which is currently leading in the opinion polls, said the government had "sold out British workers". He said, without elaborating, that Indian workers and firms would pay 20% less tax than their British counterparts. India said during negotiations that its workers and companies should not pay social security contributions on staff if they lived in Britain for fewer than three years because they would have to make social security payments in both countries. British officials could not initially say how many Indian workers would benefit or how much it would cost the British government in lost revenue. Official data shows Britain granted more than 81 000 work visas to Indians last year, more than any other nationality, although many represent health and care or other non-temporary workers who would still be expected to pay social security in Britain.
