Tronc Scheme Options

Managing cash tips and service charges has become more complicated for hospitality operators following increasing pressure from the government on fair tipping practices. Fallout from high-profile cases where employees have not been receiving tips has put restaurants, hotels, and other businesses under the spotlight when it comes to how they handle tips and gratuity.

However, not all businesses have the resources to efficiently manage their tips. Making sure tips are distributed fairly and comply with the latest government legislation requires time and a certain level of expertise. That’s where a tronc scheme comes in.

A tronc scheme is a specific arrangement used to equally distribute tips, gratuities and service charges. Hospitality operators can use third-party vendors or independent troncmasters who offer tronc schemes that do most of the heavy lifting for them, saving time, resources and money on National Insurance payments. It also takes away the worry about being compliant with changing laws around tipping.

Troncmasters offers three different tronc scheme options that provide different levels of support to hospitality operators. Tronc Lite means we will act as the troncmaster, but payments are made through the client’s existing PAYE. A Managed Tronc means we will manage the whole process, and Tronc + Payroll also covers any payments made to employees.

Tronc Lite

We act as the troncmaster but payments are made through the client’s existing PAYE

Managed Tronc

We act as the troncmaster and are responsible for the whole process, including managing the PAYE with HMRC

Tronc + Payroll

We manage all aspects of Tronc including payments to employees

Consultancy and configuration

Consult with you and potential members to design a tronc scheme

Codify the tronc scheme rules

Create a constitution for tronc scheme members

Develop communications for the members

Deliver initial communications for all members

Develop a policy for your customers

Configure secure portal for transferring data

Configure portal for members

Register tronc members with the portal

Register tronc with HMRC


Each period, we will:

Receive tronc information through portal

Identify new starters and deliver communications

Perform distribution calculations

Advise you of required distribution

Produce “electronic payslip” for members


File required reports each period with HMRC


Complete annual filings with HMRC


Make Tronc payments to employees


Why Choose a Tronc Scheme with Us?

A tronc scheme distributes the proceeds of discretionary tips, gratuities, and service charges. This includes all tips made on card and can also include cash tips if they’re pooled rather than kept by the individual. At Troncmasters, we offer different tronc scheme options so you can control what responsibilities sit in-house or with us. Implementing a tronc scheme with us ensures transparency and fairness in relation to distribution amongst the team, ensuring employees feel motivated and valued for their hard work. You can expect a range of benefits by choosing a tronc scheme today:

  • Staff take home more of their hard-earned tips
  • A tronc scheme could prevent 13.8% of your pooled tips being collected by HMRC
  • All rules and legislations regarding the distribution of tips will be followed
  • Employees and customers will have visibility over where every penny tipped is really going
  • Letting us handle tronc services will save you time and resources
  • You can choose from a range of tronc schemes

There is a growing demand for independent troncmasters because businesses value someone who can act without bias, implementing a tronc scheme that is fair, ethical and in line with the latest rules and guidelines. We are trusted to provide this service for a range of hospitality clients. For more information about us and what we do, you can get in touch with our friendly support team here.

Find out more

Want to find out more about our tronc options?

Contact us