PAYE and NICs

Tronc tax: Income Tax due, National Insurance not, in 2026/27

Updated 2026-10-28

The rule turns on one question: who decides how the money is divided.

Talk to a specialist What your team shares in a year and who decides the split. The rates come from GOV.UK.

Tips and service charges shared out a year

Card tips and service charge your staff share in a year. The default is an illustration; enter your own.

Who decides how the money is divided?

GOV.UK: if the troncmaster decides, the troncmaster pays PAYE tax and no National Insurance is due; if you decide, you pay PAYE tax and NICs.

Share of the tips going to staff already earning over £5,000 a year from you (%)

Employer National Insurance is 15% on earnings above the secondary threshold of £5,000 a year (£96 a week).

Share of the tips going to staff earning £242 to £967 a week (%)

Employees pay 8% on earnings between £242 and £967 a week and 2% above it (category A, 2026 to 2027).

Share of the tips going to staff earning over £967 a week (%)

Taxed at the 2% employee rate.

National Insurance a tronc saves a year

£23,000

Employer National Insurance not due	£15,000
Employee National Insurance not due (stays with your staff)	£8,000
Saved per £1,000 of tips	£230
Income Tax	Still due: the troncmaster runs PAYE on every tronc payment. A tronc saves National Insurance, never Income Tax.

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How this calculator works

When National Insurance is due. GOV.UK's tronc guidance: if you decide how the tronc money is divided, you pay PAYE tax and NICs; if the troncmaster, or someone else not acting for you, decides, the troncmaster pays PAYE tax and no NICs are due. (GOV.UK: employee gets tips, gratuities or service charges through a tronc)
The rates. From 6 April 2026 to 5 April 2027, category A employees pay 0% up to £242 a week, 8% from £242.01 to £967 and 2% above; employers pay 15% above £96 a week. (GOV.UK: National Insurance rates and category letters)
The thresholds. The secondary threshold is £5,000 a year and the primary threshold £242 a week for 2026 to 2027. (GOV.UK: rates and thresholds for employers 2026 to 2027)
Employment Allowance. An eligible employer can reduce its annual National Insurance bill by up to £10,500, so a small employer whose bill is already covered by the allowance saves less than shown. (GOV.UK: Employment Allowance)
The Tips Act duties. Whoever shares the tips must follow the statutory Code of Practice: a written tipping policy, a record of every tip kept for three years, and an answer to a worker's request, limited to one per worker every three months. (Code of practice on fair and transparent distribution of tips)
What is not worked out. One year at 2026/27 rates; it does not split each worker's pay week by week, and assumes your shares add up to what your staff actually earn. A troncmaster needs a separate PAYE scheme set up with HMRC.

The rule

Who decides the split	What is due	Source
The employer	PAYE tax and National Insurance	GOV.UK: employee gets tips, gratuities or service charges through a tronc
The troncmaster	PAYE tax only, no National Insurance	GOV.UK: employee gets tips, gratuities or service charges through a tronc
Someone else, not acting for the employer	PAYE tax only, no National Insurance	GOV.UK: employee gets tips, gratuities or service charges through a tronc

The 2026/27 rates a tronc avoids

Employer: 15% above £96 a week.
Employee: 8% from £242.01 to £967 a week, 2% above.

Source: GOV.UK: National Insurance rates and category letters

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Sources

This site's own dataset, every figure quoted from its source and dated:

The UK Tronc Tax Rules carries 6 published figures read from 5 sources' own pages, from 12.71 to 12,570 GBP, read 28 October 2026.

Work out what a tronc saves you

What your team shares in a year and who decides the split. The rates come from GOV.UK.

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