The TroncMaster is the most important role in any TRONC scheme. Without a genuinely independent TroncMaster, your entire NI exemption is at risk. This guide explains exactly what a TroncMaster does, who can be one, and how Rocket Tronc supports the role.
What Is a TroncMaster?
A TroncMaster is the person responsible for managing and distributing the TRONC fund. They decide — independently of the employer — how pooled tips, gratuities, and service charges are allocated among eligible employees.
The TroncMaster effectively acts as a trustee of the tip pool. They are accountable for ensuring that distributions are fair, transparent, and compliant with HMRC requirements.
Why Does the TroncMaster Need to Be Independent?
This is the critical point. HMRC’s NI exemption for TRONC distributions only applies when the person allocating the tips is not acting on behalf of or under the direction of the employer.
If the employer tells the TroncMaster who to pay and how much — or if the TroncMaster is simply rubber-stamping employer decisions — HMRC will treat the tips as employer-directed payments, and employer NI becomes payable.
The Independence Test
HMRC asks: “Does this person genuinely decide how tips are allocated, or are they simply carrying out the employer’s wishes?” If the answer is the latter, the NI exemption is lost — potentially retrospectively.
Who Can Be a TroncMaster?
The TroncMaster can be:
- A senior employee — such as a head waiter, restaurant manager, or supervisorMost common in single-venue operations
- An external appointee — someone outside the business entirelyStrongest independence, often used by hotel chains
- A management-level employee — provided they have genuine autonomyAcceptable if properly documented
Who Cannot Be a TroncMaster?
The business owner, a director, or anyone who directly sets pay cannot be the TroncMaster. A payroll manager acting on the employer’s instructions also does not qualify. The key is genuine decision-making authority over the distribution.
What Does a TroncMaster Actually Do?
The TroncMaster’s responsibilities typically include:
- Setting or approving the distribution rules (points, hours, role-based, or hybrid)
- Reviewing and approving each distribution before it is processed
- Ensuring that all eligible employees receive their fair share
- Operating a separate TRONC PAYE scheme for income tax deductions
- Maintaining records of all distributions and rule changes
- Responding to employee queries about their allocations
- Ensuring the scheme remains independent of employer influence
- Reporting to HMRC via the TRONC PAYE scheme
TroncMaster Mode in Rocket Tronc
Rocket Tronc has a dedicated TroncMaster Mode that enforces the independence requirement at a system level:
When TroncMaster Mode is enabled:
- Only the TroncMaster can create, modify, or approve distribution rules
- Tenant Admins and Managers can distribute using the current rule — but cannot change it
- If a Manager adjusts individual employee amounts, those changes must be approved by the TroncMaster
- A full audit trail records every action — who did what and when
- The TroncMaster receives notifications for any pending approvals
Employer Distribution Mode (Optional)
For businesses that choose employer-managed distribution (accepting the NI liability), Rocket Tronc supports an Employer Distribution Mode. In this mode, the Tenant Admin and Managers can distribute without TroncMaster approval. The system displays a clear warning that NI exemptions do not apply.
How to Appoint a TroncMaster
- 1Choose the right person — ideally a respected, senior employee who understands the tip distribution cultureExternal appointees are strongest for independence.
- 2Put it in writing — a formal letter of appointment confirming their independence and responsibilitiesRocket Tronc can generate this documentation.
- 3Register a TRONC PAYE scheme with HMRC — the TroncMaster operates this scheme for income taxApply via HMRC's online PAYE registration.
- 4Set up distribution rules — the TroncMaster defines how tips are allocatedRocket Tronc supports points-based, hours-based, role-weighted, and hybrid rules.
- 5Communicate to staff — all employees should understand the scheme, the rules, and who the TroncMaster isTransparency builds trust and reduces disputes.