Independent tronc audits that identify risk, ensure HMRC compliance, and improve tip distribution .

Why audit your tronc scheme?  

Under the Employment (Allocation of Tips) Act 2023, “Tipping Act”, and HMRC guidance, hospitality businesses face significant legal and financial pressure to ensure their tronc arrangements are fair, transparent, and compliant. The risks of getting it wrong are higher than ever, including: 

• HMRC reclassifying tips as taxable pay, leading to backdated employer NICs, interest, and penalties. 

• Employment Tribunal claims (up to £5,000 compensation per worker) for unfair distribution or lack of transparency under the Tipping Act. 

• Reputational damage and high staff turnover due to perceived unfairness. 

However, many internally managed schemes carry hidden risks - from employer influence and unclear documentation to outdated practices that may no longer meet legal standards.  

An independent tronc audit provides a thorough review of your current scheme, helping you identify vulnerabilities, correct non-compliance, and improve fairness in tip distribution.  

What does a tronc audit involve?  

Our independent audit process is designed to deliver comprehensive assurance and actionable insights: 

• Compliance review: We assess your scheme against the HMRC tronc rules for NICs exemption and the Tipping Act's requirements for fairness, policy, and record keeping. 

• Risk identification: We highlight areas of exposure, including employer involvement, unclear allocation methods, and missing documentation.  

• Governance check: We evaluate how tips are distributed and whether the scheme is impartial and transparent.  

• Recommendations: We provide clear, practical steps to improve compliance, reduce risk, and enhance staff trust.  

Benefits of an independent tronc audit  

HMRC compliance and audit protection

Ensure your scheme aligns with current legislation and avoids NICs reclassification, penalties, and interest charges.

NIC savings protection 

Ensure your scheme remains eligible for National Insurance exemptions preserving significant savings for both the business and employees.

Risk reduction

Identify and address issues that could lead to tribunal claims, regulatory investigations and/or reputational damage.

Improved transparency 

Build staff confidence with clear, fair, and documented tip distribution practices, which is essential for motivation and retention. 

Operational efficiency

Streamline your tronc processes and reduce internal administrative burden and ensure timely payment of tips (within one month as required by the Tipping Act).

Why use Buzzacott for tronc audits?  

At Buzzacott Troncmaster Services, we bring deep expertise in tronc compliance, tax risk, and hospitality operations. Led by Mark Taylor, Partner, our team understands the complexities of tip distribution and the importance of getting it right.  

What sets us apart  

• Independent and impartial: We offer unbiased reviews free from internal influence.  

• Legislative expertise: Our audits are aligned with the Tipping Act and HMRC guidance.  

• Hospitality sector focus: We understand the operational realities of restaurants, hotels, and leisure venues.  

• Actionable insights: We provide clear, practical recommendations tailored to your business.  

• Audit-ready documentation: We help you prepare for HMRC reviews and employment tribunals.  

Ready to review your tronc scheme?  

Contact Buzzacott Troncmaster Services to schedule an independent audit and ensure your business is protected, compliant, and trusted by your team.