What it means
Means you’re winding someone up or having a laugh at their expense, usually in a cheeky, not-too-nasty way. It’s the cleaner, Sunday-lunch version of taking the piss, handy when you want the joke but not the swear. Can be affectionate between mates, or a warning that someone’s chatting absolute nonsense with a straight face.
Usage examples
"Are you taking the mickey, mate? You forgot your wallet again after three pints. Jog on, you’re buying the next round."
"Are you taking the mickey, ten quid for a single coffee at that café?"
"He's always taking the mickey out of my accent, but it's all in good fun."
"You telling me the train's delayed again? Oh, you're taking the mickey now."
"We were only taking the mickey out of Dan's new haircut, he knows it's banter."
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Where it comes from
This is a cleaned-up British euphemism for taking the piss. The mickey in it comes from Mickey Bliss, from Cockney rhyming slang, where Mickey Bliss rhymed with piss. Over time, people kept the softer version, so it stuck as the less swear-y way to say someone's mocking you or not being serious.
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