blogs > Compliance

what makes a good tronc scheme and Troncmaster

What makes a good Troncmaster and a great tronc scheme

Managing tips fairly whilst staying compliant isn’t just about ticking boxes anymore. From 1 October 2024, when the Employment (Allocation of Tips) Act 2023 became fully enforceable, fairness and transparency became legal requirements, not nice-to-haves. And with the Employment Rights...

Employment Rights Act and hospitality businesses

How the Employment Rights Act 2025 will reshape hospitality and tronc schemes

If you’re running a hospitality business, you’ve probably heard about the Employment Rights Bill. The Bill received Royal Assent on 18 December 2025, officially becoming the Employment Rights Act 2025, and it’s bringing some of the biggest changes to employment...

Are pension contributions paid on tronc payments

Are pension contributions due on tronc payments?

If you’re running a hospitality business with a tronc scheme, you’ve probably wondered whether those tip payments need to be included in your auto-enrolment pension calculations. It’s a fair question, especially when you’re trying to get your payroll right and...

The complete and concise guide to tronc schemes

If you run a restaurant, hotel, bar, or any hospitality business where tipping is common, you’ve likely grappled with the question of how to fairly and efficiently distribute tips among your staff. For many, a tronc scheme is the answer....

What to do if tips not shared fairly

What can you do if you feel your employer isn’t distributing tips fairly

In the hospitality sector, tips are a significant part of their income, so ensuring they receive their fair share is important. When employers don’t distribute tips fairly or keep money that should go to staff, it’s not just unfair; since...

Blog - who cannot be a Troncmaster

Who cannot be a Troncmaster?

I don’t normally like doing a ‘negative’ blog, but I think this is a very important one. Operating a tronc scheme is a popular way for UK hospitality businesses to distribute tips fairly among staff while managing tax obligations efficiently....

Tips and Troncs blog - SMP and tips

Do tips and gratuities count towards the calculation of Statutory Maternity Pay (SMP)?

A question has come my way regarding the calculation of Maternity Pay, which has had my head stuck in the Social Security Contribution legislation book for a little while. So how do we arrive at the answer? First, we need...

Tips and Troncs blog - tips and student loans

Do student loan deductions apply to tips?

Many students have jobs in the hospitality sector or other sectors that receive tips. Once they graduate and need to start repaying their student loans, it raises the question of whether student loan deductions apply to these additional earnings. The...

10 months on from the new Tips legislation

Where does your business stand with the (not so new) tipping legislation?

Wow, it’s hard to believe that it has been 10 months since the watershed moment for UK hospitality, and the Allocation of Tips legislation became law. After years of ‘best practice’ advice and tronc tax arrangements that sought to bring...

Tips and Troncs blog - no need for second PAYE (1)

Why a separate PAYE scheme is unnecessary for tronc arrangements

Many hospitality businesses operating tronc schemes in the UK believe they need to establish a second PAYE scheme specifically for tronc payments. This is a common misconception that leads to unnecessary administrative burden and complexity. The belief stems from misunderstandings...