NIM02952 - Tips, gratuities and service charges: Tronc arrangements: Secondary contributor decides who will receive payments from tronc

Where the secondary contributor (usually the employer) decides who can benefit from payments made by an independently run tronc, but cannot decide how much they can benefit by, there will be no NICs liability because condition 2 of the gratuity disregard will be satisfied (NIM02922). This is because “allocation”means deciding both who can benefit and by how much.