Digital Life
Jane Austen measured wealth by income, not capital. It wasn’t just Mr Darcy’s handsome features and noble mien that drew Mrs Bennet’s attention, but also his ten thousand a year.
These days, there is an opposite calculation to be made. Lack of wealth (or my lack of it, at any rate) is easily measured by the absurd number of internet-related subscription services I realised I was paying for but no longer used.
The trouble is they all seemed like a clever idea at the time. Don’t judge me too harshly. I run a couple of small online ventures – so it’s inevitable that I will have more of these than many readers, but I still had too many.
For example, I have a Zoom subscription (£90 pa). I shan’t renew it, as the free version is usually good enough and the Microsoft equivalent (Teams) is better than Zoom anyway and is included in the £80 pa I willingly pay to Microsoft for software and other services.
I was paying about £260 pa to send out newsletters; not any more. There is a very similar (and better) service for 90 per cent less.
It cost me £120 pa for a service that allowed me to arrange emails to go out in the future. No need for that, as Gmail now includes that for nothing.
I found that I was chucking away almost £200 pa to be able to modify documents online. Ridiculous. I already have software for that. I was caught by a free trial ages ago.
I pay various subscriptions to technical and trade news sources. One of them (£95 pa) has gone right off the boil – so that’s been stopped.
I used to pay £45 pa to Evernote, a service for saving and sharing notes, but their free version is really all I need. In the bin it went.
And £90 pa for an online fitness course? Again, sucked in by a free month. Binned it.
I pay £45 pa to something called Trello; it is a system that allows several of us to collaborate on a project remotely. It works very well, but I cannot help thinking that if I took the trouble to investigate it, Microsoft Teams would offer something similar at no cost. I’ll look into it, pronto.
I pay £120 pa for printer ink. It is a service that ensures I never run out. I suppose I’ll carry on. While I’ve no way of working out if it’s worthwhile or not, it’s very convenient. I’ll keep an eye on it, though.
Then there’s the entertainment; this is where the real money goes. I subscribe to Now TV (originally for rugby internationals that are now on normal television), Netflix, ITV, Britbox, Amazon Prime (free delivery and video service, all of which I can share with my wife), Spotify and Youtube premium, which allows me and my family to watch Youtube without adverts (worth every penny) and gives access to Youtube music.
Those seven services add up to a staggering £887 pa. No wonder I’m feeling broke (although some family members who benefit do contribute).
A little checking on what we use and it’s clear that Now TV (£120 pa) and ITV (£40 pa) are certainly getting the chop. I can always resubscribe if I need them. And Netflix is under threat.
Just by cancelling unneeded online subscriptions, I have saved over £1,000 pa, and my online life is unaffected. I urge you to do the same review.
You might think I have revealed a casual, spendthrift streak. If you do, I’m not sure that I could argue with you.
But I have now taken action and am better off by 10 per cent of Mr Darcy’s income. Miss Austen would think well of me, I hope.
When tips are shared with backroom workers such as chefs and dishwashers, it will clarify how the money is distributed.
Generally, waiters prefer tips to be left in cash they can take home at the end of their shift. When tips are paid on plastic, there is a delay while the payment is processed by the bank. Then employers might pass the money back to staff through the payroll, which means they have to wait even longer for their reward. Bosses can deduct any amount from these tips, including the cost of the card-processing fees.
Staff have to pay income tax on the tips they receive. Tax is automatically deducted when they are paid through PAYE. Cash payments should be declared at the end of the year on an HMRC self-assessment form.
If the employer decides how tip money is shared out between staff, workers pay National Insurance contributions as well. The sharing system is called a ‘tronc’ and employers must tell HMRC who is the troncmaster.
Some restaurants automatically add a service charge to the bill, which they might put towards overheads such as wages or the electricity bill. It would be more honest simply to raise the cost of the food. If paying a service charge is compulsory, it is not regarded as a tip.
But if the employer does pass some of the money on to staff, it becomes part of their wages, which are taxed. When payment is voluntary, staff must pay both tax and National Insurance contributions on the amount they receive.
In future, please make an effort to keep money to hand so you can always tip waiters in cash. If you don’t have the cash, be extra generous with a tip on your card. Ask the waiting staff if they are allowed to keep all their tips. If they aren’t, complain to the management.
We should try to improve practices without waiting for the Tips Bill to become law.