Tronc system

Manage tips and ensure compliance with IRIS tronc solutions

Discover a compliant, cost-effective tronc system – fairly distribute tips, simplify tronc admin, and ensure compliance with HMRC legislation to protect your business.

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  • £6m

    tips processed every month
    via our tronc system

  • 400+

    hospitality and leisure
    businesses supported

  • 86.5

    NPS score
    (25.5 above industry average)

Tronc scheme management

Simplify tip management with a professional tronc system

Distributing tips across your business? Keep things fair, compliant, and cost-effective with a fully managed tronc system from IRIS; the hospitality payroll specialist.

  • Always compliant

    Ensure your business is adhering to the Employment (Allocation of Tips) Bill with our fully compliant and expertly managed tronc solution.

  • Always fair

    Distribute tips fairly and efficiently. Rely on specialist expertise and receive tailored advice on best practices and tronc systems for your business.

  • Always efficient

    Reduce National Insurance contributions with a managed tronc scheme, optimising tip distribution while reducing business costs and admin burden.

Tronc system benefits

How can you benefit from a tronc system managed by IRIS? 

    HMRC compliant

    Guarantee compliance with HMRC regulations

    Navigating legislation like the Employment (Allocation of Tips) Bill 2023 can be tricky.

    Our Troncmaster services ensure compliance with HMRC legislation, giving you peace of mind and protecting your business from negative consequences like fines, reputational damage, or even regulatory action.

    With a professional and independent Troncmaster service, your tronc scheme will meet every legal standard, protecting both your business and employees from unnecessary risk.

    Tips

    Maintain a fair and transparent tip allocation system

    From kitchen staff to front-of-house workers, ensure every eligible employee receives their fair share of pooled tips.

    Our system allows you to create transparent and equitable distribution rules based on factors like hours worked, specific job roles, or other agreed-upon criteria. This process eliminates bias, promotes trust, and fosters a sense of fairness and teamwork within your team.

    By ensuring clarity and consistency, employees can focus on delivering great service, knowing their efforts are recognised and rewarded appropriately.

    People looking at laptop

    Reduce costs to your business with managed tronc systems

    Prevent unnecessary National Insurance contributions on allocated tips with a properly managed tronc scheme.

    For instance, distributing £20,000 in tips through a payroll system could cost your business £36,000 annually in National Insurance alone.

    By outsourcing tronc management to an independent provider, you can eliminate costs like these, saving you thousands every year.

    Team of workers

    Choose your ideal tronc scheme solution

    Whatever kind of tronc system your business needs, our tronc consultancy service provides you with a suitable tronc management service that suits your unique requirements. 

    Whether you require a simple tronc setup or a more complex, custom model, we’ll design the right scheme to fit your specific business needs and staff structure.  

    Plus, through IRIS Payroll Services, you can simplify your tronc and payroll processes by outsourcing both in one fully managed, joined-up solution. 

    Woman on laptop

    Save time and reduce in-house admin workloads

    Managing tip allocation and administrative burdens can take your management team’s attention away from core operations and delivering an exceptional customer experience.

    Tronc management can be time-consuming and complex, requiring careful compliance with regulations and precise record-keeping. By outsourcing your tronc management to IRIS, you’ll not only reduce the administrative workload but also ensure accuracy and compliance.

    This frees up valuable time and resources, allowing your team to focus on growing your business and enhancing the customer journey.

Explore tronc scheme management packages

We offer three different tronc scheme options, providing bespoke levels of support to hospitality and leisure operators. 

  • 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 Check | Tronc payrollCheck | Tronc payrollcheck solid | Tronc payrollCheck | Tronc payrollCheck | Tronc payrollcheck solid | Tronc payrollcheck solid | Tronc payroll
Codify the tronc scheme rulescheck solid | Tronc payrollcheck solid | Tronc payrollcheck solid | Tronc payroll
Create a constitution for tronc scheme members check solid | Tronc payrollcheck solid | Tronc payrollcheck solid | Tronc payroll
Develop communications for the memberscheck solid | Tronc payrollcheck solid | Tronc payrollcheck solid | Tronc payroll
Deliver initial communications for all memberscheck solid | Tronc payrollcheck solid | Tronc payrollcheck solid | Tronc payroll
Develop a policy for your customerscheck solid | Tronc payrollcheck solid | Tronc payrollcheck solid | Tronc payroll
Configure secure portal for transferring datacheck solid | Tronc payrollcheck solid | Tronc payrollcheck solid | Tronc payroll
Configure portal for memberscheck solid | Tronc payrollcheck solid | Tronc payrollcheck solid | Tronc payroll
Register tronc members with the portalcheck solid | Tronc payrollcheck solid | Tronc payrollcheck solid | Tronc payroll
Register tronc with HMRCxmark solid | Tronc payrollcheck solid | Tronc payrollcheck solid | Tronc payroll
Each period, we will:
Receive tronc information through portalcheck solid | Tronc payrollcheck solid | Tronc payrollcheck solid | Tronc payroll
Identify new starters and deliver communicationscheck solid | Tronc payrollcheck solid | Tronc payrollcheck solid | Tronc payroll
Perform distribution calculationscheck solid | Tronc payrollcheck solid | Tronc payrollcheck solid | Tronc payroll
Advise you of required distributioncheck solid | Tronc payrollcheck solid | Tronc payrollcheck solid | Tronc payroll
Produce “electronic payslip” for membersxmark solid | Tronc payrollcheck solid | Tronc payrollcheck solid | Tronc payroll
File required reports each period with HMRCxmark solid | Tronc payrollcheck solid | Tronc payrollcheck solid | Tronc payroll
Complete annual filings with HMRCxmark solid | Tronc payrollcheck solid | Tronc payrollcheck solid | Tronc payroll
Make Tronc payments to employeesxmark solid | Tronc payrollxmark solid | Tronc payrollcheck solid | Tronc payroll

Get the right tronc system for your business

Do you have questions about tronc payments, or want to explore tronc scheme management solutions for your business?

Simply fill in the contact form and our team of tronc management specialists will be in touch to answer questions and explore solutions with you.

Outsource your tronc and payroll for a complete solution

Alongside managing your tronc scheme, did you know we can also support you with running your payroll? 

Rely on specialised expertise in hospitality and leisure payroll, and outsource both your payroll and tronc scheme management with IRIS Payroll Services

Ensure compliance with legislation, pay your people accurately and on time, and free up internal resource to focus on what matters – your business. 

office worker on laptop | Tronc payroll

Stay compliant and on top of tip management with managed tronc solutions

Woman bar restaurant server | Tronc payroll

Frequently asked questions

A tronc is a system used to distribute tips, gratuities, and discretionary service charges among employees within a business.

The word “tronc” originates from the French phrase “tronc des pauvres”, meaning collection box or poor box. In the hospitality and leisure sector, “tronc” describes the arrangement that exists to pool and share the proceeds of tips and gratuities, paid by customers, in a fair way to staff.
A tronc system collects pooled tips and gratuities from various sources (cash, card payments, or discretionary service charges) into a fund.  

By employing a proper tronc system, a business can ensure fairness in allocation while providing tax advantages to both themselves, as the employer, and their employees. 

Since the Employment (Allocation of Tips) Bill 2023 has come into force in the UK, fair allocation of tips has become a legal requirement – as such, more businesses are looking to establish effective tronc systems
A tronc scheme is a tax-efficient way to manage the collection and distribution of tips and gratuities among employees.  

Overseen by an independent Troncmaster, the scheme allows employers to save on National Insurance contributions while ensuring employees receive more of their tips. 
A tronc system is beneficial for businesses in the hospitality and leisure sectors, such as restaurants, cafes, bars, spas, hotels, and pubs – basically, anywhere tips or discretionary service charges are collected and shared among employees.  

Tronc systems can also be beneficial to some non-hospitality businesses, like MOT centres. 

Whether you’re an independent restaurant or a hotel chain, having a robust tronc system – and even outsourcing tronc management to a specialist like IRIS – can help you avoid fines, save money, reduce admin burden, and ensure fairness. 
No, a tronc scheme is not legally required. However, using a tronc helps businesses comply with the legal obligation to distribute tips and gratuities fairly under the Employment (Allocation of Tips) Act 2023, while also benefiting from the associated tax advantages. 

A tronc system ensures fairness by having an independent Troncmaster or committee manage the process. They establish clear guidelines for allocation based on factors like hours worked or roles.  

Independent tronc scheme providers like IRIS can act as your Troncmaster on your behalf, ensuring fairness, accuracy and compliance. 
While it’s not mandatory to outsource, many businesses choose to do so to ensure compliance with HMRC regulations and streamline administration.  

Professional Troncmaster services like those provided by IRIS can save time, reduce errors, and provide peace of mind for employers.  

For more information on how tronc systems can simplify your tip management, get in touch with our team today. 
Traditionally, a tip refers to cash directly given to an employee, while a gratuity is typically paid via card or added to a bill. However, both terms are now used interchangeably to represent extra payments from customers to show appreciation. 

Customers leave tips and gratuities to reward good service. Businesses can pool these and use systems like a tronc to distribute them fairly among their team, ensuring recognition for all involved in delivering the service, from kitchen staff to front-of-house

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Useful resources

Learn more about tronc systems and effective tip management

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