Appointing an independent troncmaster

Why implement a tronc?

If you’re an employer passing tips, gratuities and service charges (tips) onto your staff by adding them to the general payroll, your staff will be taking home less than they could, because the tips will be paid net of both Income Tax and National Insurance Contributions (NICs).

A tronc scheme is a special pay arrangement that lets businesses share customer tips to employees. By sharing tips via a tronc, the need to pay NICs for both staff and businesses is removed providing significant savings for both. It allows staff to have up to 100% ownership of their hard-earned tips with a say in how they’re shared out, improving staff motivation and retention as employees feel valued and rewarded.

With pending legislation on the horizon, a tronc scheme will be even more advantageous for the sector as businesses look for ways to ensure they are compliant with the Employment (Allocation of Tips) Bill, which focuses on fairness of tip allocations.

Why use an independent troncmaster?

For tips to be exempt from NICs, a troncmaster must not be the proprietor, a partner or other company official. Using an independent troncmaster to handle the responsibility of sharing tips through a tronc will ensure they’re not subject to NICs.

There is a growing demand for independent troncmasters, such as Buzzacott, who will also:

• Safeguard you from any HMRC challenge by ensuring the tronc remains up-to-date and in line with HMRC policy.
• Ensure the tronc is not influenced by employers, nor by bias or favouritism, and represents what’s in the best interest of all employees.
• Remove the administrative burden of running the tronc and lets staff focus solely on their daily tasks at hand.

How we can help

Whether you’re a new or an established business, we can help you set up and implement your bespoke tronc scheme quickly, within four weeks of your initial engagement. Get in touch today for a free consultation.

By appointing us as your independent troncmaster you’ll benefit from our experience of supporting a wide range of businesses in the hospitality sector, from bars and restaurants to hotels and casinos. Our troncs are completely transparent, conform fully to HMRC requirements, provide an exemption from NICs and offer significant savings to employers and staff. 

We define ourselves by the needs of our clients, large and small, and work hard to build and maintain relationships that are personal, collaborative and enduring – to be a partner you can trust. We take time to understand you, discovering what makes you tick. The values we represent, and our consistent advice, mean you can trust Buzzacott to do the right thing – for you or your organisation.

What our clients say

Call us today on +44 (0)20 7710 3389 or email troncmaster@buzzacott.co.uk. Alternatively, fill in the form below and a member of our team will be in touch.