Clare chooses the watch for Amy, after convincing Lance to buy a new present.
Phil catches Hannah with her new clothes and Claire says she bought them for her. Phil tells Hannah it's a good job she hadn't spent her money on them as he's just realised she'll have to pay tax on the jukebox earnings.
Karl arrives with the post and passes Toadie his phone bill. He's stunned and Karl grabs it off him. They look through to see if the calls were made and Karl points out there's a lot of 0055 numbers and asks if Toadie's been ringing some sort of pervert line! Toadie hastily grabs the phone bill back and the two scrap over it. Toadie tells him it's his problem and he'll sort it out.
KARL: If the jury saw that face and I was the prosecutor, I wouldn't have to say a word.
Toadie answers the door where Hannah and Claire tell him about the tax bill. Hannah says that she's already spent her money and they were trying to get to him before he did. Karl butts in that it's a bit late for that. They leave to break the news to Lance and Toadie asks if Karl believes in mercy killings.
Lance is tidying up 32 and practices his sexy voice, "Hello, baby, I am coming to you!" before opening the door. It's Hannah and Claire, who ask if that's his sexy voice. He says he's got a sore throat.
HANNAH: Are you expecting Amy?
LANCE: (hoarsely) No, not really.
CLAIRE: Then you may invite us in.
Hannah and Claire walk in.
LANCE: I've got work to do!
HANNAH: (rolls eyes) Then you are expecting Amy!
Hannah says that it's important they talk and tells him about the "ginormous tax bill" they'll have to pay. Lance tells her that they don't have to pay it right now, so she should get out! Hannah asks if he heard what she said and spells out TAX with her fingers to him. Claire says that tax isn't the three letter word on his mind! Hannah collapses with "cramp" on the sofa and Lance begs them to leave as there's a knock at the door. Claire says she'll help Hannah and Lance can open the door. As he does so, Amy walks in and goes to kiss him but he pulls away, pointing to the living room. Amy walks in and sees Claire and Hannah.
HANNAH: Don't mind us, pash away.
Lance says that Hannah and Claire are just leaving but Hannah and Claire grab the Playstation and say they'll stay for just one more game - Hannah has to rest her leg!
In the pub, Phil and Ruth are sitting having a drink when Madge and Harold walk in. They greet them and Ruth leaves to see what damage the kids have caused during the school holidays. Ruth says she'll see Phil tomorrow night and he says he'll look forward to it. Harold concernedly asks if they ruined anything and Phil says they didn't - he actually wanted to talk to them. He tells them about the stunt with Claire, Hannah and the clothes. He's concerned what her parents will think but Madge doesn't know anything about the clothes. Harold says that he's sure her parents are as charitable as Claire is and tells him that Phil's got nothing to worry about. Madge isn't as convinced but Harold waxes lyrical about Claire.
Lance pushes Hannah and Claire out - literally! He apologises to Amy and he gives her the watch because he wanted to make up for the cruddy present he gave her. Amy lies about liking it and Lance picks up on the fact she doesn't like it. Amy says that she loves it and Lance asks her if she's sure. The two hug and Amy looks unconvinced over his shoulder.
Hannah and Claire go back to Toadie's and he asks if Phil said how much they'd have to pay. Karl says that it should be about a third but it might be a bit less because they're splitting the profits three ways. Hannah reckons it's about $100. Toadie says he's got his phone bill to pay as well and Karl gleefully says that he's been rather chatty.
KARL: What was that phone number again? 00...
Toadie tells them it's an $800 bill. Karl says it's time he told them - it might not be as bad as they thought because they only pay tax on the first $5000. Hannah's upset that Phil didn't tell her because he must've known it. Karl says that Phil was trying to teach her a lesson. Hannah's indignant that he could've come straight out and told them but Karl points out that the lesson wouldn't have worked half as well if he had. Toadie wonders if the phone company will give him his first 5000 calls free!
Madge wanders in with the price tags that she found in Claire's room. Madge says to Harold that she thinks Claire's been stealing them and Harold is stunned. Madge says something odd is going on and she never trusted the little miss perfect act. Harold says that a few price tags don't prove anything but Madge says that she'll give her chance to defend herself but she's going to love seeing her get out of this one.
Harold's playing the tuba when Claire comes in. Claire tells Harold that he's improving and Harold thinks she means something else, like having high standards! He's upset that Madge was wearing earplugs but she protests that it was because of the volume, not his playing! Madge confronts Claire with the tags that she found in her room.
CLAIRE: (innocently) In my room?
MADGE: (slowly) Yes. The place where you sleep!
Harold tries to defend Claire and Madge confronts her, asking if she stole them. Claire says she didn't but Hannah bought some clothes and she tried them on in Claire's room and must've left the tags there. Harold's happy with the explanation but Madge says that Hannah told Phil a completely different story. She says it's obvious one of them is lying and it's about time they found out which one of them it is.
Lance sees Amy out and Ruth calls for her to pop around any time. Ruth says that they're getting on well and she's glad as she thinks Amy's a lovely girl. She tells him that she didn't want to put him on the spot earlier but tomorrow, Phil and his lot are coming for dinner and wonders if he wants to invite Amy. Lance says that there's going to be a nice big extended family dinner - is there going to be some sort of an announcement? Lance teases her by humming the wedding march and Ruth laughs, telling him there's plenty of stirring for him to do in the kitchen with a wooden spoon! Lance asks if Phil and Ruth are back together but Ruth propels him into the kitchen towards the wooden spoon.
Madge, Harold and Claire arrive at 26 to sort out the incident. Phil asks Hannah what happened.
PHIL: So how about it, Hannah?
Hannah looks at Claire.
PHIL: There's no use looking at Claire!
Madge says that Claire should start because she found the tags in her room. Claire says she bought them and didn't steal them.
MADGE: What, with no money? That's very clever of you, how did you manage that?
Hannah jumps in and says she lent her the money and Claire was going to pay her back. Phil asks how did Hannah end up with all of the clothes. Claire says that when they tried them on, they didn't suit her so she gave them to Hannah.
PHIL: So you very kindly handed them over.
PHIL: And they just happened to be a perfect fit?
Claire protests that she'd never steal. Madge says that she did lie and Phil says that's just as bad. Hannah says that she didn't lie, they just..
PHIL: Bent the truth, twisted it, whatever!
HANNAH: We said that Claire gave me the clothes and that's exactly what happened!
PHIL: Hannah, you must think you're dealing with idiots!
Hananh says that Phil lied to her about paying tax. Phil says that was completely different and she knows it. He says he thought they had an understanding and he's disappointed in her. Madge says that if they think they're getting away with it, they've got another think coming.
Claire tells Harold over breakfast that she's really sorry and also disappointed in herself. She says that Hannah's been so nice to her and she was just trying to be friendly. Harold says that it was admirable enough motivation and Claire says she understands why they were angry but they must understand that she'd never steal. Claire says she'll stay in like Madge has told her to and will do any chores they want her to do - she really means it. Harold says that he knows she does so that's why he thinks they can forget about the punishment - after all, she has apologised, she did it out of misguided friendship and she's learnt a lesson. Claire darts out of the door as Madge appears, asking where Claire is.
MADGE: Where is she? In her bedroom?
HAROLD: No, no, she isn't actually.
HAROLD: (pause) Errrrrrr.......no.
MADGE: Well here is she then?
Harold turns away.
HAROLD: (mutters) Gone to see some of her friends.
MADGE: But I told her she had to stay in!
HAROLD: Yeah, well I said I thought it'd be ok.
MADGE: YOU WHAT?
Harold says they had a discussion over breakfast and he didn't mince his words! Madge scoffs and says that Claire really saw him coming!
Hannah asks why Debbie gets to return the clothes - they're hers! Phil tells her that it's because 'his darling daughter' can't be trusted. She says that it's not fair and Phil tells her not to make things worse than they already are - there's two issues at stake: firstly that she lied or "bent the truth or twisted it or whatever you want to say!" and secondly, that she's been spending money in a totally irresponsible manner lately. Hannah says that everyone else has got something out of the jukebox - Lance got a games machine and Toadie got a mobile phone. Phil points out that Toadie isn't his child and in his opinion, buying a phone is a ridiculous thing to waste your money on. Hannah says that Ruth didn't go ballistic over the Playstation and Phil tells her that they're a lot older than she is. Hannah yells that it's not fair; she's not a child anymore. All she wants to do is buy things that she wants, with her own money. Phil says that's fine but she's been spending her money willy nilly. Hannah says if she found something she really liked, could she have it? Phil says yes, as long as it's something she really wants and not something someone's talked her into buying. He tells her it'd be better if she put all of her money, or most of it, into the bank and saved it for a rainy day. Hannah agrees that'd be fair.
Claire is playing on the Play station whilst Lance and Amy watch. Lance tells her to take it with her. Claire says that anyone would think that they don't want her there. Lance tells her they're about to start an assignment but Claire points out they're on holiday. Lance says it's due first day back. Claire asks what it's in and Lance stumbles. Claire says he's a terrible liar. Claire gets up to leave and spies the watch on Amy's wrist. She tells Amy that Lance didn't know what to buy and it took her ages to convince him that it was the perfect present. Sensing Amy's cool response, Claire leaves and Amy confronts Lance. She says that the whole point of the presents was to get something that THEY thought the other person would like. She tells him she's glad she didn't buy it because if he really thought she'd wear something like the watch, they're obviously not compatible. Lance looks stunned. He says that he's been shopping for her twice and she's still not happy. He asks how many girlfriends get ten week anniversary presents and Amy protests that lots do but he's not convinced. Lance tells her that he hated what she bought him too. He said he only said he liked it because he didn't want to hurt her feelings. He pulls the ring off and gives it her back, as she passes the watch over and tells her that she knows him about as well as he knows her! They sit awkwardly, stating that now they're both happy!
Lance returns the watch and his eye is caught by some earrings. The assistant offers the fact that he can take them and have the rest of the refund in cash. Lance keeps staring at them.
Lance returns home and says to Ruth that he thinks there'll be one less for dinner tomorrow but Ruth cuts him off, whispering that Amy's in the front room looking tense. Amy tells him that she took the ring back and bought him something else - and there's a chance that he might like it. Lance tells her that he did the same. They exchange gifts and they're both delighted - Lance has tickets to the Science Fiction Film Festival - five classic films in one day and Amy's chuffed with the earrings. Lance told her that he chose them himself. He says if she doesn't like them, he can take them back but Amy protests that she loves them. They kiss.
Toadie's looking at the phone bill and Karl says that he hates to say he told him so... Toadie says that there's nothing more he'd love to say. Karl says that seeing as it's Toadie, yeah! Karl said the business was supposed to show him how to save money not to throw it away. He tells him to get rid of the phone and answers the door to Claire, who's looking for Toadie. Karl says that he's just a shell of a man but Toadie greets her warmly. Claire says it makes a nice change - Lance couldn't wait to get rid of her, Monsieur Martin thinks she's a bad influence and Madam Bishop thinks she's a thief. Karl comments that she's been busy! Toadie confronts her about ringing France on his phone - $200 worth of calls. Claire says she can't afford to pay him but Toadie says he'll work out a payment plan for her.
Lance and Amy are kissing when they're interrupted by Bonnie. Lance realises that the Sci Fi tickets are passes for two. Amy offers to go with him but Lance says he thought she hated Sci Fi. Amy says that Lance likes it and she wants to see what the fuss is about. She says they've been fighting so much, it's time to make up for it. They kiss and Amy says she wishes she didn't have to go home. Amy asks if Ruth'd let her stay the night. Lance says, "I wish," and Amy tells him to ask Ruth.
LANCE: You mean..spend the night with me?
Amy smiles and Lance looks stunned.