Tronc Calculator — Tips & Service Charge Distribution
Tronc is a formal arrangement used in the hospitality industry to distribute tips, gratuities, and service charges to staff. When operated by an independent troncmaster and not controlled by the employer, tronc payments are exempt from employer National Insurance contributions — a significant saving compared to paying the same amounts as wages. However, tronc payments are still subject to income tax via PAYE, and the troncmaster must register with HMRC. This tronc calculator helps hospitality businesses and troncmasters calculate how a tronc pool should be distributed among staff based on hours worked, shows the PAYE income tax deduction for each person, and calculates the net payment each staff member receives. It uses 2025/26 income tax thresholds and assumes a standard weekly or monthly tronc distribution period.
| Name | Hours | Share | |
|---|---|---|---|
| 35.7% | |||
| 28.6% | |||
| 35.7% |
| Name | Share | Gross tronc | PAYE tax | Net payment |
|---|---|---|---|---|
| Front of house 1 | 35.7% | £714.29 | −£142.86 | £571.43 |
| Front of house 2 | 28.6% | £571.43 | −£114.29 | £457.14 |
| Kitchen staff | 35.7% | £714.29 | −£142.86 | £571.43 |
2025/26 income tax rates. PAYE estimates only — actual deductions depend on individual tax codes, student loans, and pension contributions. No employer or employee NI on tronc payments operated by an independent troncmaster. Not professional tax advice.