Now we are in the midst of the festive season the hospitality sector is facing its busiest time of the year. Following up on my earlier article, Tips on troncs and tax compliance, I am revisiting the subject of troncs to shed light on this sometimes contentious area.

Troncs can provide both a fair way of rewarding employees with tips and gratuities from customers, and an effective way for businesses to benefit from savings on national insurance contributions (NICs).

Firstly, a quick reminder on the meaning of tronc and its potential benefits. A tronc is a system run by an individual, called a troncmaster, to control the collection and distribution of tips and gratuities.