Tronc
Increase your employees’ take-home pay at no added cost to your business with an HMRC compliant tronc scheme from WMT.
meet the team
meet the team
Increase your employees’ take-home pay at no added cost to your business with an HMRC compliant tronc scheme from WMT.
Tronc schemes, also known as ‘troncs’ or tronc arrangements – are used by businesses in the hospitality and leisure sector to distribute service charges, tips and gratuities to their employees.
Offering significant benefits to both employers and staff through long-standing tax reliefs and exemptions, a tronc can increase employees’ take-home pay at no added cost to your business. It also makes sure that HMRC receives the right amount of tax on the ever-increasing number of discretionary payments made on a payment card.
Tronc schemes put both the business and the employee in the same tax position as cash tips – income tax is payable by the employee on the discretionary payment received, and no National Insurance Contributions (NICs) are due.
HMRC may check that your tronc arrangement fully meets the terms for exemption from NICs on payments made through the scheme. As the rules of tronc schemes are complicated and ever changing, your business could be at risk if you fail to keep up with them.
Pooling and sharing out cash tips, converting tips paid on card to cash from the till, and inadvertently creating contractual arrangements for tips are all areas of risk.
WMT designs, implements and runs tronc schemes that adhere to HMRC’s rules and guidance. Our advice is based on following ethical principles designed to protect you from tax demands and employment tribunal claims relating to the distribution of tips to staff.
Our experienced team successfully defends businesses challenged by HMRC and proactively advises on employment issues, such as:
Get in touch with our hospitality team to find out more about how we can help you.
Thank you for showing interest in our Troncmaster services. As you will understand, we are currently exceptionally busy with our clients in the run-up to the new legislation becoming effective in July 2024.
We would still love to help you and design and operate your Tronc scheme.
If you leave us your details we will contact you nearer to July to discuss our services and how we may be able to assist you.
4 Beaconsfield Rd
St Albans
Hertfordshire
AL1 3RD