The horse should dance, no tips! (7)
I believe the answer is:
mustang
'the horse' is the definition.
(mustang is a kind of horse)
'should dance no tips' is the wordplay.
I cannot quite understand how this works, but
'should' could be 'must' (synonyms) and 'must' is present in the answer.
'no' could be 'n' (common abbreviation) and 'n' is found within the answer.
This explanation may well be incorrect...
Can you help me to learn more?
(Other definitions for mustang that I've seen before include "creature" , "Ford car, first produced in 1964" , "Small, half-wild horse of the U.S." , "Small feral horse of the US" , "Small, wild US horse" .)