Tronc payroll systems and a taxable employee benefit

I am a member of the Tourism and Hospitality Group.  I have a client with three Central London restaurants. There are two areas where I would like some advice/experience.


-Tronc payroll systems.  I am familiar with the HMRC booklet E24 Tips, Gratuities, Service Charges and Troncs and broadly understand the rules.  I would like to speak to someone with practical experience. My daughter was employed as a chef (not at my client) and her pay was paid with two payslips, which seemed to me to be very much organised by management rather than management and tronc master. So I am trying to understand the boundaries in practice.


-The last budget announced that late night taxis will be a taxable employee benefit. I understand this was directed mainly at late night city workers.  Restaurants also sometimes pay for late night taxis – particularly when the end of the day is say 1am and the person is due back early the next day.

                - I assume this is not law yet

                -Have there been representations in favour of the restaurant industry?

                -Might there be some sort of dispensation in this area?


Tim Morris


Liles Morris Chartered Accountants


  • Tim

    You may like to access the Tips on Tax guide on the website of the British Association of Hospitality Accountants, even though you say you are familair with the subject.

    The two payslips you mention could be because the tronc payroll and the regular payroll are both processed by the restaurant's accounts department.  This is often done for practical purposes - the tronc distribution being controlled by the tronc master, not the management.

    I do not have sufficient knowledge to address your question about late night taxi fares.  Maybe someone else will be able to answer this.

    Howard Field

  • One of his regular talking points with clients is how to help them manage the fair distribution of tips, gratuities and service charges whilst considering the tax considerations and liabilities, which accompany such payments. Here, Andy provides an insight to the tronc system, a potential solution to the tips challenge. Liteblue portal ( also using best payroll system. You can also check liteblue epayroll system for more information.