Insightful tax advice

Tronc scheme


Derived from the French for ‘collecting box’, a tronc scheme is a type of pay arrangement that’s often used to share out tips, gratuities and service charges among employees.

This could be used in a restaurant, café, bar, or any other hospitality business where your staff can receive an additional, voluntary payment from customers.

It’s separate from the PAYE scheme you use to pay your staff’s wages, and it’s typically run by an employee – called the ‘troncmaster’ – who’s responsible for running payroll and reporting information to HMRC. The troncmaster could be voted in by committee, or they could be chosen by the employer.

Depending on the way the tronc system is set up and operated, the money distributed through it might not be liable for national insurance contributions, providing savings for both you and your employees.

That’s only the case if it meets specific conditions set out by HMRC, however, so it’s essential to check that you’re operating the scheme correctly if you’re going to take full advantage of its cost-saving benefits.

As restaurant industry specialists, we can help you get your tronc scheme up and running, so you can start seeing the savings.

At a glance

  • Save on National Insurance contributions
  • Increase transparency on tips and gratuities
  • Boost staff motivation and reward customer service

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