Tie up Bill, uplifted about bit of hanky-panky in loo (8)
I believe the answer is:
bathroom
'loo' is the definition.
(I know that loo can be written as bathroom)
'tie up bill uplifted about bit of hanky' is the wordplay.
'tie up' becomes 'moor' (as in mooring a boat).
'bill' becomes 'tab' (a tab is a bill at a bar).
'uplifted' shows that the letters should be reversed in order.
'about' indicates putting letters inside.
'bit of' indicates taking the first letters.
The first letter of 'hanky' is 'h'.
'moor'+'tab'='moortab'
'moortab' backwards is 'batroom'.
'batroom' enclosing 'h' is 'BATHROOM'.
'panky in' acts as a link.
This may not be right. Some or all of it may belong to another bit of the clue.
Can you help me to learn more?
(Other definitions for bathroom that I've seen before include "place of 17 [WASHING]" , "Chamber for ablutions" , "Scene of ablutions" , "Abhor Tom (anag)" , "Usually the smallest room" .)