blogs > Tips and Troncs

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...

Why cashing out tips risks non-compliance with HMRC

Why ‘cashing out’ tips is a risky practice for hospitality businesses

With the increasing amount of tips given by customers on their card or via contactless payment methods, rather than cash, it highlights a practice that some operators allow, which could land them in hot water. Cashing out. Cashing out occurs...

The cost of getting your tronc or tip policy wrong

The cost of getting your tronc scheme or tipping policy wrong

HMRC penalties and tribunal fines for non-compliant tipping You are confident your tips policy is compliant and have set up what you think is a proper tronc scheme. Your tips are being distributed. Staff seem happy. Everything looks fine. Then...

5 common tronc mistakes

5 common tronc mistakes that could cost you thousands

Running a tronc scheme isn’t complicated, but get it wrong and you could face some serious consequences. We’re talking thousands in unexpected tax bills, unhappy staff, and potential tribunal claims under the new tipping legislation. Over the years, we’ve seen...

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....

The impact of fairness on staff morale

Why fair tipping practices matter for employee engagement

National Customer Service Week gives us a perfect opportunity to celebrate the people who make hospitality businesses thrive. One of this year’s themes is employee engagement, and there’s one often-overlooked factor that has a massive impact on how valued your...

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....