blogs > Tips and Troncs

How one awkward question exposed hospitality’s biggest trust issue

I had an excellent dining experience recently at a well-known central London restaurant. First-class service. Great food. But then the bill arrived, and that’s when things got murky. A service charge had been added, but there was no mention that...

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...

Tips and Troncs blog - problems with pooled tips (1)

Problems with tip pooling systems in restaurants

When you leave a tip at a restaurant or hotel, do you know where that money actually goes? Many places use a tronc scheme or “tip pooling” to share tips among all staff. While sharing sounds fair, these systems often...

Tips and Troncs blog - No NIC on tronc schemes

How not to run a tronc scheme

Running a tronc scheme (a system for pooling and distributing tips among staff) seems straightforward, but mismanaging it can lead to legal issues, employee dissatisfaction, reputational damage and unwanted attention from HMRC. Here’s a comprehensive guide on pitfalls to avoid....

Tips and Troncs blog - Distribution rules (1)

Tronc scheme tips allocation and distribution options

Unlike countries such as the United States, where tipping culture is deeply embedded in the wage structure, the UK takes a different approach. This has evolved considerably in recent years, particularly with the introduction of the 2023 Employment (Allocation of...

How to choose a Troncmaster blog header

Choosing the best Troncmaster for you

Running a tronc scheme in your hospitality business brings many benefits. But the success of your tronc often comes down to one key person – your Troncmaster. It is so much more than a fancy title; the role comes with...

Blog - Tronc FAQ - Header Image

Tips and Troncs – 12 Important FAQ’s

In our latest blog, we answer some of the common questions asked of us by employees in the hospitality industry regarding tips received by businesses on behalf of employees and the implications of the new Allocation of Tips Act. If...

Blog- Everything you need to know about tronc schemes

Understanding tronc schemes

Tips are a big deal in restaurants and hotels. Staff count on them, and owners need to handle them properly. Plus, the Employment (Allocation of Tips) Act 2023 sets down regulations and rules about how tips can be distributed. Although...