With tipping practices back in the spotlight, dealing with service charges and Tronc has become a real concern for many restaurant and hospitality operators. 

As well as providing routine restaurant accountancy services, our specialist team provide tronc advice and troncmaster services.

Employment (Allocation of Tips) Bill

Back in 2019, Her Majesty The Queen announced that the government “will take steps to make work fairer, introducing measures that will support those working hard”. The new Employment (Allocation of Tips) Bill will ensure that 100% of all tips, service charges and gratuities will be given to staff.

WHAT IS A TRONC?

A tronc – also refered to as troncs or tronc arrangements – is a special tax-efficient pay arrangement used to distribute tips and service charges to employees and a cost effective method motivation, incentivisation and reward. Usually administered by an independent Troncmaster (who must not be a director or owner), he or she decides how the money is distributed to employees.

 

TAX ON TRONC

Employees who receive service charge via a tronc are liable to pay income tax but benefit from a 12% Employees National Insurance saving. Employers also benefit from a 13.8% Employers National Insurance saving.

Tronc and service charge

TRONC ADVICE AND TRONCMASTER SERVICES

As well as providing routine restaurant accountancy services, our specialist payroll and Tronc team can advise on:-

  • Cash Tips, Service Charges and Tronc
  • Correctly pooling cash tips
  • Implementing and distributing service charge
  • Setting up a points based distribution
  • Tronc healthcheck
  • Troncmaster services
  • Fair distribution arrangements
  • Safeguard against HMRC inspections
  • Reducing administration and payroll obligations relating to Tronc
  • Tronc and National Minimum Wage

FREE TRONC HEALTH CHECK

We provide a free, no obligation health check on your current tips, Tronc and service charge arrangements. The health check identifies areas that may leave your current TRONC arrangements invalid and areas that can be improved or streamlined.

SPECIALIST HOSPITALITY ACCOUNTANTS

Jeffreys Henry is one of the UK’s leading firms of Chartered Accountants with significant restaurant and hospitality experience.

We work with over 60 Michelin-starred restaurants, fine dining restaurants, themed restaurant groups, hotels, franchises, individual bistros, gastro pubs, bars and pop-ups. Some of our London based restaurant clients include White Rabbit Fund, Kym’s, Ottolenghi, the Coal Office (collaboration between Palomar chef Assaf Granit and designer Tom Dixon), The Urban Leisure Group, Tommi’s Burger Joint, Tom Conran Restaurants, Kricket, Lahpet, Pachamama, Wild Tavern and others.

INTRODUCTORY MEETING

CONTACT US TO ARRANGE AN INTRODUCTORY MEETING, OR FOR A QUOTE.

BHIMAL HIRA

Partner


MELANIE GOWER

Payroll/Tronc Manager


MARK TENZER

Partner - Restaurant & Hospitality


RELATED TRONC AND SERVICE CHARGE NEWS

Business Secretary Expected to Announce Significant Changes to Service Charge, Tips and Gratuities

The business secretary Kwasi Kwarteng is expected to announce a significant change in the law this week that will require employees of restaurants, bars and hotels to receive 100% of service charge.

Finance and Accounting Tools for Restaurants, Bars and Hotels

There are a number of accounting tools that can be used by restaurants, bars and hotels to ensure that their financial operations are properly managed and used correctly. Financial tools provide real-time financial data which can help you capitalise on opportunities and plan better. Below is a list of some of the best accounting tools which we would recommend for your hospitality business.

Super-Deduction – What is it and how does it work?

Between 1 April 2021 and 31 March 2023, companies can claim a super-deduction in the form of first year relief of 130% on qualifying plant and machinery additions. This means a company spending £100,000 on qualifying assets would have £130,000 deducted against its taxable profits, resulting in a tax saving of £24,700 per £100,000 of expenditure.

Social distancing with… Dan Anton, Co-founder of Lahpet

The latest in our series of quick-fire client interviews, Jeffreys Henry speaks to Dan Anton, co-founder of Lahpet. Lahpet started life as a pop-up in the railway arches of London Fields by co-founders Dan Anton and Zaw Mahesh, before opening their first permanent site in Shoreditch in 2018. Lahpet remains one of London’s only restaurants to specialise in Burmese cuisine. Dan talks about the success of DIY kits during lockdown, how they prepared for indoor re-opening as restrictions eased,  and opening their second and largest site in the midst of the pandemic. 

Social Distancing With… Hannah Vernon, Urban Leisure Group

The latest in our series of quick-fire client interviews, Jeffreys Henry LLP speaks to Hannah Vernon of Urban Leisure Group. Hannah discusses how the second lockdown and tier restrictions impacted ULG’s performance, how government guidance for the hospitality industry has been unclear and the ways in which ULG have adapted their business model to the changing times.

R&D Tax Relief for Food & Beverage Innovators

Research & Development (R&D) tax relief is often overlooked by food and beverage manufacturers, product developers, food scientists, and food clinical researchers.

Social Distancing With… Yotam Ottolenghi

Yotam, who owns 6 restaurants in London, discusses how the new restrictions have been a hindrance to the recovery of the hospitality industry, what he believes the government should be doing to offer more support and where he sees the future of the industry.

Chancellor announces support for businesses in Tier 2 alert areas

Rishi Sunak has announced new support measures for hospitality, accommodation and leisure businesses that fall under the Tier 2 coronavirus alert areas.

Eat Out to Help Out – Is It Helping?

Over 83,000 restaurants have now signed up for the government’s Eat Out to Help Out scheme, designed to protect jobs and boost sales in the hard-hit hospitality sector. In the first week alone, over 10.5 million meals were discounted, however, just how much is this helping the industry?