Tronc

The short answer: Tronc software is the better choice for most UK hospitality businesses. Spreadsheets cost nothing up front, but they rely on manual data entry, break easily as teams grow, and make it hard to prove compliance with the Employment (Allocation of Tips) Act 2023. Tronc software automates tip splits, keeps the three-year records the law requires, and, through an independent tronc scheme, removes employer National Insurance (15%) and employee National Insurance (8%) from tips.

A spreadsheet can still work for a single small venue with a simple, even split. Once you have multiple roles, multiple sites or more than a handful of staff, the time, risk and missed NIC savings usually outweigh the cost of software. If you manage tips in Excel or Google Sheets today, this guide explains exactly what you gain, and what you risk, by staying put.

What is tronc, and why does how you manage it matter?

A tronc is a pooled arrangement for sharing tips, gratuities and service charges among staff. It is run by a troncmaster, a person or organisation independent of the employer who decides how the pool is split. When the employer has no say in the allocation, tronc payments are exempt from National Insurance for both the business and its employees. Income tax is still due through PAYE.

Since 1 October 2024, the Employment (Allocation of Tips) Act 2023 has made tip handling a legal obligation, not just good practice. Employers in England, Scotland and Wales must:

• pass on 100% of qualifying tips to workers, with no deductions beyond tax;
• allocate tips fairly, following the statutory Code of Practice;
• have a written tipping policy available to all staff;
• pay tips by the end of the month after they were received;
• keep records of tips received and how they were allocated for three years;
• give workers access to their tipping records on request.

Workers can take claims to an employment tribunal, which can order unpaid tips to be repaid and award compensation. That is why the tool you use to split tips now matters as much as the split itself.

Managing tronc in spreadsheets: the hidden costs

Spreadsheets are where most venues start. They are familiar, flexible and already on every laptop, so it is easy to see why so many managers still split tips in Excel or Google Sheets.

Where spreadsheets fall down

• Manual data entry. Someone has to copy card tips from the POS, hours from the rota and cash tips from the till every pay period. Each copy is a chance for error.
• Fragile formulas. One overwritten cell or broken range can underpay a whole team, and nobody may notice for weeks.
• No audit trail. A spreadsheet rarely shows who changed what, when. That makes it hard to evidence fair allocation if a worker challenges it.
• Record-keeping burden. You must keep three years of records in a form you can share with any worker who asks. Scattered files and old versions make that slow and risky.
• Poor transparency for staff. Staff usually see a single number on a payslip, not how it was worked out. Low visibility breeds distrust, even when the split is fair.
• Missed NIC savings. A spreadsheet does not make you independent of the allocation. Running a compliant tronc scheme needs a genuinely independent troncmaster, which most in-house setups lack.
• Key-person risk. The spreadsheet often lives in one manager’s head. When they leave, the logic leaves with them.
• Doesn’t scale. Multiple roles, split shifts, several sites and agency staff turn a simple sheet into a maze.

The real cost of a spreadsheet is rarely the software. It is the hours of admin every pay run, the errors that slip through and the National Insurance you keep paying.

What tronc software does differently

Tronc software replaces the manual steps of a spreadsheet with an automated, auditable process. Good platforms connect to your POS and rota, apply your split rules, and handle payment and records for you.

• Automatic data sync. Card tips and service charges flow in from your EPOS; hours and roles come from your rota or payroll.
• Flexible, rule-based splits. Split by hours, role, points, department, site or shift, and change the rules without rebuilding formulas.
• Built-in compliance. A written tipping policy, three-year records and on-time payouts are generated as you go, not reconstructed later.
• Independent troncmaster. An HMRC-registered provider acts as troncmaster, so tips can be paid free of National Insurance.
• Staff visibility. Employees see their own tips, hours and payslips in an app or dashboard.
• Multi-site reporting. Head office sees every venue in one place.

Signs it’s time to switch to tronc software

• Tip admin takes more than an hour or two each pay period.
• You split by role, points or department, not just hours.
• You run, or plan to run, more than one site.
• Staff have questioned how their tips were calculated.
• You can’t quickly produce a worker’s tipping record from three years ago.
• You pay employer NIC on tips and service charges today.
• One person is the only one who understands the spreadsheet.

If two or more of these sound familiar, the savings in time and NIC will usually cover the cost of software within the first few months.

Frequently asked questions

Can I legally manage tronc in a spreadsheet?

Yes. The law does not require software. But you must still allocate tips fairly, have a written tipping policy, pay tips by the end of the following month and keep three years of records. A spreadsheet makes each of these harder to prove.

What is the difference between a tronc and a tip split?

A tip split is simply how tips are divided. A tronc is a formal scheme run by an independent troncmaster. Because the employer does not control the allocation, tronc payments are free of National Insurance.

Do tips paid through a tronc scheme still pay income tax?

Yes. Income tax is deducted through PAYE. Only National Insurance is removed.

How much does tronc software cost?

Most providers charge a monthly fee, often per employee. JustTip starts at £8.99 per employee per month (ex VAT), with no long-term contract.

What happens if I get tip allocation wrong?

Workers can bring a claim to an employment tribunal. The tribunal can order you to repay tips owed and award compensation.

How long does it take to switch from a spreadsheet to tronc software?

Most venues can switch in days. Connect your POS, confirm your split rules and invite staff to the platform. Your existing spreadsheet history can be kept alongside the new records.

From October of this year, The Employment Rights Act 2025 will make it mandatory for businesses to consult staff before creating or amending a tipping policy (which must be done at least every three years). This will ensure that employees are more involved in the tipping/Tronc process and that it becomes more fair and transparent.

Best practise for this will involve implementing (or refining) your Tronc committee – a council of employees from across the business who will sit in on the Tronc process and oversee how tips and service charges are distributed. The Tronc committee sits alongside the troncmaster to make sure the Tronc is fair, transparent, and representative of the staff who actually receive the gratuities. This means it can’t have employers, directors, or anyone with influence on the council – this would go against the Allocation of Tips Act and may open the business up to financial liability.

How does this benefit staff?

The requirement to consult staff before creating a tipping policy will make the entire process more transparent. Tronc committees will ensure that all staff members are fairly represented and spoken for when it comes to overseeing tip distribution. It leaves less room for bias, imbalance and unfair practice.

A Tronc council means tips are distributed across the whole team, not just those who happen to deal directly with customers. Kitchen staff, bar teams, and support roles all contribute service, and a good tronc committee reflects their interests and gives them a say in the process. As well as this, when the people involved in the distribution process are elected representatives from the team itself, staff have real input into the decisions.

Things to Consider When Setting Up a Tronc Committee

1. Make it a democratic process

Best practise is to have the Tronc committee formed of members elected by their teammates. This will minimise conflicts down the line and keep the process as transparent and fair as possible. It’s good to have staff with different job roles/from different teams, i.e bar staff, kitchen staff, front of house etc.

2. Tronc Committee ≠ Troncmaster

The Tronc committee is there to give employees a voice when it comes to tip distribution rules. However, the final decision lies with the troncmaster. The committee can make proposals and recommendations to the troncmaster, but cannot overrule them. Otherwise, it risks becoming a non-compliant Tronc system and losing NIC exemption.

3. 0 employer involvement allowed

As with all other aspects of Tronc, employer involvement and influence is not allowed. It is a bad idea for an employer to get involved in or influence any Tronc committee decisions, as this would be seen as the employer influencing the Tronc process and would not be compliant. In order for a Tronc system to remain compliant and NIC exempt, the employer must have 0 involvement in tip allocation.

If your business is still running an internal Tronc scheme, you may run into risks such as inconsistent processes, compliance liabilities, and a strain on resources – especially if your troncmaster is a member of staff who could face burnout or human error. Outsourcing your Tronc to an external provider brings peace of mind, automating your tipping process from start to finish.

Here are some of the benefits of outsourcing your tips and service charges to JustTronc:

1. Real-time insights

Your JustTronc dashboard lets you track tips and gratuities in real-time, so that you can keep track as you go. With end-to-end transaction reports for every tip and service charge, you can track the full tip journey from customer to employee. These transaction reports are also now required by law, so we provide full documentation for everything you need to stay compliant.

2. Multi-site management

JustTronc makes tip management even easier for multi-site operators. Admin managers can switch between venues/sites in one user-friendly dashboard, without the need for separate accounts for each site. This makes the Tronc process more streamlined for all.

3. Tip Policy Management

When beginning the Tronc process, you will be provided with a compliant tipping policy template to help you set and manage your business’ policy. Your staff must agree to this policy by law, and will have to agree to the policy when signing up to JustTronc. This keeps your Tronc process compliant with The Employment (Allocation of Tips) Act, and maintains full transparency for your staff.

4. Tailored Dashboard

Within your business dashboard, you will have full insights into the NIC you have saved, a weekly/monthly breakdown of tips and service charges, and full transaction reports for all gratuities.

5. Integration with Payment Providers

We integrate with major payment providers such as myPOS and SumUp so that you can automate your processes even further. With these integrations, we can get tip amounts directly from your card machine, saving you even more time each week.

For more information, or to get a demo of JustTronc, book a meeting with our team using this link here.

It is no secret that the UK Hospitality industry is facing a lot of financial pressure lately, from rising wages and NIC rates to staffing shortages and high turnover. This has left operators looking for new ways to save money, cut costs, and keep their head above water.

This has left some customers sceptical of costs when dining out, with some taking their frustration out on tips and service charges. It is a common misconception that businesses are now adding service charges to top up their business funds and help revenue. However, this is not the case: under the Employment (Allocation of Tips) Act, it is illegal for hospitality operators to retain any share of tips and gratuities left for workers- including service charges.

So, what really happens to your service charge? Let’s break it down:

What is a service charge?

A service charge is a percentage of a customer’s bill added on at the end of a meal, usually ranging from 10-15%. These charges can be compulsory or discretionary. Compulsory service charges are flagged before your meal or service, usually written on the menu or a sign near the door. This often applies to larger parties or bookings. Discretionary service charges can be added to the bill after service, and customers can ask for this to be removed.

Where does the service charge go?

Under the new tipping legislation, employers cannot retain any share of tips or gratuities- this includes service charges. That means that 100% of the service charge you leave goes to staff members. This is a common concern among UK consumers, but you can rest assured that legally any amount of service charge or tips you leave is going directly to those who served you.

What happens then?

In the UK, tips must be distributed fairly between staff. Often employers split tips through a Tronc system, which is essentially payroll for tips. This ensures that your service charge, or any tips left, get split fairly between the team behind your meal/drinks. All businesses must also have a written policy on tips that is approved by staff members. This means your team are on board with the way that your service charge is being split, and understand how it’s distributed- if you have any concerns, your host or wait staff will be able to tell you exactly where your tip or service charge is going.

How does Tronc help this?

A Tronc system is the most common and fair method of processing and distributing tips in the UK. For a Tronc system to be compliant, there can be no employer input or bias at play when it comes to tip splitting.

Next time you pay a service charge, you can have the peace of mind of knowing that under UK law it must be paid fairly to the staff behind your service with zero deductions. Restaurants are not trying to bring in sneaky price hikes or extra fees- they are just recognising the good work their team are doing.

Understanding the Legal Requirements for Tronc Management in the UK

The Employment (Allocation of Tips) Act 2023, now in force, marks a major shift in how tips and service charges must be handled in UK workplaces. With new rules on transparency, timing, and fair allocation, businesses must ensure they have compliant systems in place.

At the heart of many such systems is a tronc scheme and the person responsible for operating it is the troncmaster.

But who can legally be a troncmaster? What are their responsibilities? And how do they maintain compliance with HMRC and the new statutory code of practice?

Who Can Be a Troncmaster?

Here’s the good news: a Troncmaster can be either an internal team member or an external service provider. The key is that they must operate independently when it comes to tip allocation.

1. Internal Troncmaster (Employee-Led)

• Often a senior team member or peer elected by colleagues.

• Should be someone trusted and respected by the team.

• Must not be influenced by managers or business owners when deciding distribution.

2. External Troncmaster (Third-Party Led)

• Many businesses choose to appoint an external tronc provider like JustTip to manage tips.

• This ensures full independence, legal compliance, and an expert handle on evolving rules.

• Ideal for multi-site operators or businesses with complex staffing patterns.

Important: The employer cannot dictate how tips are distributed. Their only role is to support the process not steer it.

Do you’ve any questions or queries about JustTronc? See our FAQs below to find out all you need to know!

How will JustTronc help my business?  

In an ever-evolving hospitality sector, digital and contactless tipping culture has failed to match the perception of integrated and efficient administration. In the process, many businesses have become grossly tax inefficient or riddled with administrative error when dealing with tip collection and distribution.  

A digital Tronc system has the ability to relieve these worries as you the employer are no longer responsible for the pooling and distribution of gratuities. This responsibility passes to a Troncmaster, who collects and distributes tips NIC-free in a fair and complaint manner direct to your employees. This independent, transparent and complaint system ensures fairness for employer and employee alike. 

Why JustTronc?  

With years of experience in gratuities collection and distribution, JustTip’s JustTronc solution is the one-stop shop for employers buried under administrative and compliance headaches related to their tips.  

Acting as your external Troncmaster, JustTip brings a wealth of industry experience and a tax-complaint knowledge base direct to your UK business. Our refined collection and distribution systems coupled with Tronc-specific support ensures your employees get paid on time and in full, NIC-free.  

How much can I save? 

In addition to the administrative burden and time spent, see our savings calculator to find out just how much you could save for your business and staff with our JustTronc solution today. 

How does JustTronc work?  

After you sign up for a JustTip account here, your dedicated account manager will contact you via phone or email to allow platform access. After access is enabled, you’ll need to invite your staff through our intuitive JustTronc Portal and allow them to validate their details, following which you can fully activate your Tronc solution!  

Tips will be distributed weekly direct to staff accounts on the basis of hours worked and ‘Tronc Points’, a points system designed to reflect an employee’s relative contribution, role or responsibility and ensure fair and proportionate distribution, all decided by you. 

JustTip provide bespoke, ongoing customer support tailored to any Tronc-specific queries you may have. Further information pertaining to JustTronc questions and queries can be found here.  

Is JustTronc compliant?  

JustTronc automatically generates reports which are required by the HMRC under the Employment Act 2023.  

Your business will need a full written policy of tip collection and distribution, including clearly stated mechanisms of legislation compliance. For a minimum of three years your business will also be required to keep record of all collections, payments and payees processed through your Tronc system. 

This is enforced by the Employment Tribunal, who can order compensation of up to £5,000 per employee in the event of non-compliance.  

To get started with JustTronc, book a call with our team here or see our savings calculator to find out how much you could save for your business and staff with JustTronc today. 

If you run a hospitality business in the UK, you’re probably familiar with the Tronc system. Tronc systems separate tips from your business and processes them independently of payroll. This brings with it a host of benefits, such as exemption from NIC costs and compliance with tipping legislation, making it the most efficient way to handle tips in your business.

However, many businesses are still handling their Tronc systems the old-fashioned way. If your Tronc system consists of an excel spreadsheet and a casio calculator, it might be time to take action and bring your Tronc into the 21st century. Digital systems like JustTronc automate your tronc process, streamline your operations, and lower the rate of human error involved with manual calculations.

Here’s what a digital Tronc system can do for you:

Automation

Digital Tronc systems are designed to automate the Tronc process, saving you valuable time. A digital Tronc system spares you the manual counting and calculations, doing this for you automatically. Tronc points and hours worked can be factored in easily and automatically, sparing you the guesswork and mental maths.

As well as this, a digital Tronc system such as JustTronc will generate reports for you automatically (which are required by HMRC under the Employment (Allocation of Tips) Act 2023). This reduces the stress of having to get your records together if needed, as they are all easily accessible in the one place.

External Troncmaster

A troncmaster is in charge of overseeing the tronc process and allocating tips. There are a lot of advantages to having your Tronc system managed by an external troncmaster. To stay compliant and NIC-exempt, the troncmaster cannot be the employer- they must be completely separate.

An external digital troncmaster is the best route to take- this saves your senior staff from the hassle of taking on the role of troncmaster – a burden they may not be willing or able to take on. It also completely removes the Tronc process from your business, so that you don’t need to stress over tips and gratuities.

User-friendly Tronc Portal

The JustTronc dashboard is designed to be as user-friendly as possible. The modern and intuitive platform keeps all Tronc records and reports in one place, so that you and your staff have full transparency when it comes to the Tronc process.

Tips and gratuities are split through the portal using a formula that factors in hours worked and Tronc points – this takes the need for calculating tips manually out of your hands. It’s a fully simplified process that eliminates miscalculated/unpaid tips at the hands of human error.

Modern Solutions for a Modern Workforce

The hospitality sector is rapidly becoming more digital. From online ordering to digital rostering systems and contactless payment systems, there is no reason your Tronc system should get left behind. A modernisation of your Tronc system will help bring your tips into the 21st century- no more manual calculations or burnt-out troncmasters.

To get started with JustTronc, book a call with our team here or see our savings calculator to find out how much you could save for your business and staff with JustTronc.

JustTronc is officially here, and businesses across the UK are now benefitting.

Employer NICs rose from 13.8% to 15% last month. Businesses of all shapes and sizes are now looking for ways to trim costs and save money. Luckily for the hospitality sector, businesses with a compliant Tronc system in place are exempt by HMRC from paying these NICs on tips and service charges. Enter JustTronc.

So what can JustTronc do to help your business? Read on to find out:

No NICs on Tips

JustTronc separates tips from your business and pays them to employees independently to payroll. With Tronc, businesses save 15% in NICs on all tips and gratuities. As well as this, employees save 8% NICs each on their tip income. This gives staff a well needed boost in earnings.

To see how much this will save your business, click here to use our savings calculator. Simply input your monthly tip income to find out how much you and your staff would save with JustTronc.

Legal Compliance

Last year, The Employment (Allocation of Tips) Act came into law. This standardised tipping practise across the UK and created a code of practise for hospitality businesses when it comes to tips. Businesses that aren’t compliant with legislation could face financial liability of up to £5,000 in compensation per affected employee.

Luckily, there are many benefits to Tronc systems, particularly JustTronc, that keep your business compliant with the act and help you avoid this liability, such as:

Transaction reports and records

Under legislation, businesses must now have transaction reports for all tips that come through their business. JustTip generates reports for all tips, service charges, and gratuities, and retains them for the legally-required three years. Records and reports for each payout and individual tip are available on a user-friendly dashboard for both you and your staff.

Timely Payouts

The Act states that all tips received by the business must be paid out to staff no later than the end of the next calendar month. JustTronc pays tips directly to staff bank accounts every week, ensuring this deadline is never missed by the business.

Tipping Policies

All businesses are required to have a written policy stating how tips are pooled and split. This must be accessible to all employees. With JustTronc, the business tipping policy can be accessed by both the business and staff through their JustTronc dashboards.

Streamlined Operations

As well as tax savings and compliance, JustTronc separates tips from your business, streamlining your operations for you. With tips managed externally, your admin load is reduced, giving you more time to spend on other tasks. It also saves you the stress of electing an internal troncmaster, a stressful roll that many hospitality workers may not be willing to take on.

Staff Retention and Satisfaction

With a Tronc system in place, the tipping process becomes a lot more transparent for employees. This boosts job satisfaction, as opposed to foggy, unclear tipping practises.

With JustTronc, your team is also exempt from paying the 8% NIC liability on their tips and gratuities, giving them a boost in their tip income.

If you’re ready to revolutionise your tipping system with JustTronc, book a call or demo with our team today and get your business started!

It’s official: JustTronc is now live! JustTronc is a modern, compliant, and transparent solution for managing tip distribution across the hospitality sector.

With a recent rise in employer NICs to 15% across the UK, Tronc systems are becoming essential. But managing a compliant Tronc in-house isn’t always straightforward. That’s where we come in.

What Is a Tronc?

A Tronc is a special pay arrangement that allows businesses to distribute tips, gratuities, and service charges to staff fairly and without additional National Insurance liabilities, provided it’s operated correctly by an independent troncmaster.

It’s a powerful way to save money on NICs, boost morale, and stay compliant with HMRC and the Employment (Allocation of Tips) Act 2023 requirements.

What can JustTronc do for you?

JustTronc comes with a host of benefits for the hospitality sector:

✅ Fully HMRC-compliant
Our system is aligned with current legislation, as outlined under the Employment (Allocation of Tips) Act 2023.

✅ Independent Troncmaster Service
We provide a qualified, impartial troncmaster to ensure fair and lawful distribution, removing the administrative and legal burden from your business.

✅ NIC Savings
JustTronc separates tips and service charges from your business payroll, so you avoid 15% NICs on these gratuities.

✅ Payroll Integration
Seamless integration with your existing payroll means no extra manual work and fully compliant reporting.

Why It Matters Now

With NICs now risen to 15%, cost-efficient solutions such as Tronc systems matter more than ever. JustTronc saves you 15% on all gratuities in your business, which can be thousands annually for most hospitality businesses.

Use our savings calculator to calculate your savings with JustTronc! Or book a demo here to chat to our team and find a good fit for your business.