An independent tronc keeps £22,485 a year out of National Insurance
Tronc and Tips Calculator
The same tips, two ways: allocated by the employer, or by an independent tronc. The difference is National Insurance, on both sides, and it is not small.
Tronc and Tips Calculator
The same tips, two ways: allocated by the employer, or by an independent tronc. The difference is National Insurance, and it is not small.
The rules, in three sentences
Since 1 October 2024 the Employment (Allocation of Tips) Act requires 100 per cent of tips to reach workers by the end of the month after the month they were paid, with a written policy and records kept.
Tips are always taxable. But tips distributed by a tronc with a genuinely independent troncmaster escape BOTH employer and employee National Insurance; tips the employer allocates do not. The saving below is that difference.
Independent means independent: the employer does not decide who gets what. Run it properly, with the troncmaster operating the tronc PAYE, and the Tronc Records Workbook keeping the trail the Act expects.
Take the workbook
The year worked both ways in Excel, the per-person difference, and the records sheet a tronc should keep.
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