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Taxopedia  ›  T  ›  Tronc
T · Glossary

Tronc

Tip-distribution scheme used in hospitality — usually NI-free, taxable as income.

A tronc is a tip-distribution scheme run independently of the employer (typically by a "troncmaster"). Tips passed through the tronc are taxable as employment income but NI-free, saving roughly 8% employee + 13.8% employer NI.

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