{"id":23397,"date":"2024-03-18T15:49:06","date_gmt":"2024-03-18T15:49:06","guid":{"rendered":"https:\/\/www.langricks.com\/?p=23397"},"modified":"2024-03-20T14:51:12","modified_gmt":"2024-03-20T14:51:12","slug":"calling-all-hospitality-businesses-are-you-aware-of-the-new-tips-laws","status":"publish","type":"post","link":"https:\/\/dev.withcreative.co.uk\/langricks\/calling-all-hospitality-businesses-are-you-aware-of-the-new-tips-laws\/","title":{"rendered":"Calling all hospitality businesses, are you aware of the new tips laws?"},"content":{"rendered":"
With new Tips laws on the way now is a good time to think about a Tronc scheme which helps businesses in the hospitality and leisure sector make savings on national insurance contributions.<\/p>\n
From 1st July 2024 employers will no longer be able to make deductions from tips to cover costs and 100%<\/strong> of the tips will go to employees with employers being required to provide a written policy on their tip distribution. Tips paid through the payroll attract national insurance liabilities but with a Tronc Scheme employers and employees will make savings on national insurance contributions. The term Tronc is thought to come from the French term ‘tronc des pauvres’, literally translated as box for the poor which was traditionally a collection box kept in churches for donations for the poor, and is now the term for the special pay arrangements used to collect tips, gratuities and service charges in the hospitality industry<\/p>\n
What is a Tronc Scheme?\u00a0\u00a0 <\/u><\/strong><\/h3>\n
A Tronc is a special arrangement with HMRC where the employer does not control the allocation of tips. Instead, it is decided by an appointed Troncmaster, who is responsible for collecting, distributing and accounting for PAYE on tips. Although monies paid from a Tronc are taxable under PAYE, they are not subject to NIC.<\/p>\n
What is a Troncmaster?<\/u><\/strong><\/h3>\n
The Troncmaster is responsible for allocating the tips, gratuities and voluntary\/discretionary service charges which make up the Tronc funds. Employees must be made aware of who the Troncmaster is and be able to discuss all matters relating to the tronc with them.<\/p>\n
\u00a0<\/u><\/strong>Who can be a Troncmaster?<\/u><\/strong><\/h3>\n
Whoever you choose must be independent of the company’s decision-making and hiring responsibilities. So, this rules out business owners, directors, senior management, HR and possibly other staff such as Team Leaders or Head Waiters if they have a part in hiring<\/p>\n