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