Tipping made fair and easy...

...for your team and your business

With the new Allocation of Tips legislation, how do you make sure your tip policy is ‘fair’?

The long-awaited Allocation of Tips Bill became law in October 2024. The idea behind it is simple – when customers give tips to reward good service, they expect them to go to the staff who earned them.

However, for many hospitality workers, tips have been unfairly allocated, and the rules are poorly explained. Some unscrupulous businesses even held back a portion of the tips for their profits or to cover ‘costs’.

Plus, when tips are run through payroll, without a tronc scheme, there’s wasted National Insurance costs. No wonder things had to change,  luckily ‘Tips and Troncs’ are on hand to help, offering personable, people focused Troncmaster services backed up by the latest cloud-based Tronc Management technology.

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Ensure your tips policy is fair and compliant

How can you ensure your tipping policy is fair?

One of the main requirements of the new Allocation of Tips legislation is that tips must be allocated in a fair and transparent way. Sounds simple, but how do you prove that your tips policy is fair? ‘Tips and Troncs’ can help!

An important part of establishing fairness is ensuring that the policy has been created in consultation with employees, that they have had the opportunity to give their opinions, and that they have been kept fully up to speed on the process and the resulting policy.

Introducing our Tips Consultancy Service

As part of our Tips Consultancy Service, we can carry out an employee consultation survey, gather responses and formulate a summary of their feedback.

This can then be used to feed into your Tips Policy. Even if you have an existing tronc scheme, our experienced ‘Tips and Troncs’ consultants can review it in light of the new legislation and if changes are needed, we can advise and support your employee consultation on any changes.

How much can you save with a tronc scheme?

One of the main benefits of a tronc scheme is the savings it can give to your employees and your business. How?

It’s all about National Insurance. A tronc scheme is a special pay arrangement with HMRC that lets businesses fairly share pooled discretionary tips and service charges with employees. The benefit is that tips put through a tronc scheme do not attract National Insurance tax for either the employer or the employee.

Hospitality staff behind the counter of a coffee bar

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