The Tips and Troncs story
Ensuring tips are fair for all
Our smart solution for all things tips, troncs and tax
It was a long time coming, but the Tips Allocation legislation, which came into play in October 2024, has finally put some structure to the allocation of tips to hospitality staff.
As hospitality operators come to terms with what is required of them, reviewing their current tip allocation policy and potentially making changes in order to be compliant has become another burden on an already pressurised sector.
Payroll & Tax Specialists
With a payroll background, we understand all the tax and payroll implications for managing tips and tronc schemes.
Tronc Compliance
Our Troncmasters ensure your tronc scheme is managed by someone independent of the business owners.
Personal
Service
Our team of tronc experts can set up and manage your tronc scheme by acting as an independent Troncmaster.
There is room for an independent tronc service to support hospitality organisations
The new legislation has thrown tips and services charges into the spotlight. What has gone before is no longer acceptable, and it is proving to be a painful process for many organisations.
Even those who believe they have a fair process could easily be non-compliant with the new requirements.
Troncs that are in place will need to be reviewed as legislative requirements mean some of the tronc scheme practices in the past will no longer be allowed.
For busy hospitality businesses, having a trusted guide through this minefield is invaluable, and this is where ‘Tip and Troncs’ comes in.
A comprehensive range of tronc services
Tronc schemes are a tax-efficient way of processing pooled tips in a fair and compliant manner.
They have been around for a while, and although not a requirement for the new legislation, they do have many of the elements that the new legislation requires, such as fairness, transparency, and ensuring the maximum amount of money for the employee.
Pooled discretionary tips distributed via a tronc scheme do not attract National Insurance tax, which reduces the tax deductions for the employee and removes the cost of Employers’ NI (ERs) companies having to pay on the tip value.
