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HMRC internal manual

National Insurance Manual

Tips, gratuities and service charges: Tronc arrangements: Employer indirectly allocates payments from the tronc

If there is clear evidence to demonstrate that an employer devised and imposed thesystem used to distribute tronc funds neither of the conditions in the gratuity disregard(NIM02905) will be satisfied and so Class 1 NICs will be due.

Employer promises or guarantees specific amounts from the tronc

If the employer promises or guarantees receipt of a certain amount from the tronc, thatmay suggest that the employer has sufficient de facto control over the operation of thetronc to constitute an indirect allocation of that amount to the employee. For moreinformation about establishing allocation see NIM02970.