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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....

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Why National Insurance Contributions should not be due on tronc schemes

In the hospitality industry, understanding the nuances of tronc schemes and their tax implications can save businesses and employees significant amounts of money. One of the most important aspects to understand is that National Insurance Contributions (NICs) are not due...

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- Tips and VAT header

VAT and tips – 4 top tips to help you better understand

There is a lot of noise at the moment about how to distribute tips to employees following the Allocation of Tips Legislation that came into effect in October 2024. But another aspect of tips that also causes great confusion and...

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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...

Holiday Pay and troncs blog

Holiday pay and tronc schemes explained

Recent developments in UK employment law have sent ripples through the hospitality industry following the landmark Big Table tribunal case. This decision has significant implications for restaurant groups, hotel chains, and other hospitality businesses that operate tonc schemes, particularly regarding...

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