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.
Tronc scheme packages
Explore tronc scheme management packages
We offer three different tronc scheme options, providing bespoke levels of support to hospitality and leisure operators.
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Tronc Lite
We act as the troncmaster but payments are made through the client’s existing PAYE
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Managed Tronc
We act as the troncmaster and are responsible for the whole process, including managing the PAYE with HMRC
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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 | | | |
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.
Combined tronc and payroll services
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.
Stay compliant and on top of tip management with managed tronc solutions
Frequently asked questions
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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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