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BIS considers updating tips and troncs guidance

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The Department for Business, Innovation and Skills is considering revisions to HMRC’s guidance on the tax and NICs treatment of Tips, gratuities, service charges and troncs (leaflet E24), as part of a wider consultation on the transparency of employers’ practices in relation to these payments to employees in the hospitality, leisure and service sectors.

Among the broad aims of the consultation is ensuring that workers receive a fair share from discretionary service payments. One option for achieving this is to ‘incentivise and increase the prevalence of well managed tronc systems’. Suggested additions to the E24 guidance include:

·       how a tronc committee should be elected, managed and remain accountable, with no employer input or control;

·       the ability for workers to elect their troncmaster;

·       ensuring only relevant workers are eligible to hold the position of troncmaster;

·       how all workers should participate in the tronc;

·       how discretionary payments for service paid by card can be distributed via a tronc;

·       how deductions are managed within a tronc system; and

·       recommending that the troncmaster consults with all staff before making any changes to the distribution of payments.

The consultation also asks whether tronc requirements should be placed on a statutory footing. The consultation runs until 27 June 2016. See

Issue: 1307
Categories: News