A tronc is a special pooling arrangement used to distribute tips, gratuities and service charges to employees. The troncmaster is a person, other than the employer, who is responsible for these arrangements.

If tronc schemes are in operation the charity must tell the payroll who the troncmaster is so a PAYE scheme can be set up for the tronc. The troncmaster is personally responsible for the operation of the PAYE scheme. The troncmaster may use the employer’s payroll to operate PAYE on his or her behalf but the troncmaster’s PAYE records must be kept separately from the employer’s.

For more information, see E24: Tips, gratuities, service charges and troncs.