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HMRC internal manual

National Insurance Manual

HM Revenue & Customs
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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 frompayments made by an independently run tronc, but cannot decide how much they can benefitby, there will be no NICs liability because condition 2 of the gratuity disregard will besatisfied (NIM02922). This is because “allocation”means deciding both who can benefit and by how much.