Tronc Compliance

How to keep your tronc HMRC compliant

Changes to the legislation and HMRC compliance surrounding troncs make it difficult to keep up, and therefore stay compliant. Also, we have found that just because there is a tronc scheme set up, decisions about how it is implemented can result in tax inefficiencies that are costing both the employee and employer.

The importance of a troncmaster

At one extreme, organisations are putting their head in the sand and hoping their processes don’t get picked up by HMRC, and at the other, they are so over-cautious that they are failing to make use of the tax savings that can be applied to a correctly set up tronc.

tronc compliance

If the employer is not involved in the decision making on the distribution of tips, then the tips do not attract NI. This means the appointment of a troncmaster to act as the person who decides on the allocation. This can be an employee within the business (as long as they aren’t an owner, director, or senior person responsible for the business decisions).

This often means it falls to people such as restaurant managers to be the troncmaster and this is not only a big responsibility on top of their daily tasks, it is asking a lot of somebody who will not have the knowledge or expertise regarding the complexities of troncs.

By having a third party troncmaster you have impartiality, it doesn’t over-burden a key member of staff and you can be sure your scheme is not only compliant but tax-efficient.

tronc compliance

Let us act as your troncmaster

We have expertise in not only troncs but also payroll and associated tax. We have a variety of options, all of which save on NI, but that fit in with your situation and the level of involvement you want to have.

Our Tronc Lite service is cost-effective and easy to set up, using your existing payroll and PAYE to process tronc payments.

At the other end of the spectrum is our Tronc Complete service which provides the ‘lightest touch’ to employers with Tronmasters also processing the tips and making payments to staff through a separate PAYE.

Find out more

All our schemes are legal and HMRC compliant. Find out more about how we can support your tronc scheme!

Contact us