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Tips, Gratuities, Service Charges and Troncs

15 August 2018

BDO LLP (together with WMT LLP and HOSPA) have produced a guide for operators to refer to when considering how a tronc should be operated. The guidance aims to support UK hospitality sector businesses in the compliant, efficient and transparent treatment of tips, gratuities and service charges which are typically administered through a tronc arrangement.

The guidance offers detailed guidance in all areas of tronc including:

  • How to structure a tronc
  • Who can be the appointed troncmaster and what are the associated responsibilities
  • VAT consideration
  • Interaction with National Minimum/Living Wage
  • Income Tax compliance
  • National Insurance Contributions compliance

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