Running a Tronc scheme.

Buzzacott Troncmaster implement ethical tronc* schemes designed to fairly distribute tips, gratuities and service charges voluntarily given by customers to staff. Our tronc schemes conform to HMRC requirements resulting in distributions being exempt from National Insurance.

One of the main challenges of any business in the hospitality, leisure and service sectors is how to fairly and ethically distribute tips, gratuities and service charges voluntarily given by customers to staff. We can help you to take out the hassle of this compliance task and by doing so lower staff turnover and provide a motivated, productive workforce who take home more pay at no increased cost to you.

What is Tronc?
A Tronc is a special pay arrangement that lets you fairly distribute staff tips, gratuities and service charges given by customers. You can save a great deal of time, money and hassle by using Buzzacott as your independent Troncmaster.

What are the benefits of having an independent Troncmaster?
• Up to date knowledge of HMRC powers and rules;
• Conform with HMRC requirements and exempt from National Insurance;
• Fair, transparent and ethical;
• Free from employer influence or favouritism and run for the benefit of staff ;
• Staff can get 100% ownership of hard-earned tips, plus a say in how they’re shared out;
• Staff feel valued and rewarded so less likely to move on; and
• Staff and customers can refer to formal rules to allocate and distribute service charges.

*In case you’re wondering, the word stems from the 1920s French term tronc des pauvres –  a collection box for donations to the poor. 

There are some 150,000 businesses in the UK where tipping is common, but the practice is far from transparent. So what’s the solution? How can businesses in the hospitality, leisure and service sectors distribute tips fairly and transparently? Many employers decide to distribute gratuities by adding it to the general payroll. But there’s a drawback: the extra is often taxed as salary, meaning the staff receive it net of Income Tax and National Insurance Contributions (NICs). Enter an alternative option, one which benefits all: Troncmaster schemes.

Watch our video below on how a Tronc scheme works, and how it can help your business.

Download these useful resources:
Troncmaster tax considerations
Troncmaster top tips

Want to speak to an expert regarding tronc schemes?

Call us today on +44 (0)20 7556 1243 or fill in the form below and a member of our team will be in touch.

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