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Hospitality payslip guide

Tronc, service charge, tips, and the new tipping law. Hospitality payslips show pay structures unique to the industry, and the 2024 Allocation of Tips Act changed the rules. Here is what your payslip should show in 2026.

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Educational estimates only. Not tax, legal, financial, payroll or employment advice. Verify with your employer's payroll team or HMRC.

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Common questions

What is tronc?

A separate fund into which tips and service charges are pooled and distributed among hospitality staff according to a documented allocation policy. A troncmaster (often nominated by staff) administers it. Tronc payments are subject to income tax via PAYE but, when properly run, are NOT subject to NI.

What did the 2024 Tipping Act change?

From 1 October 2024 (and continuing in 2026), the Employment (Allocation of Tips) Act 2023 requires employers to pass on 100 percent of tips and service charges to workers, with a fair allocation policy and the right to request a written breakdown. Pre-2024 deductions for breakages, tills shortages or admin are now unlawful.

Should service charge be on my payslip?

Yes. Service charge income paid to you must appear on your payslip as a distinct line, separate from your basic hourly pay. If your employer pools service charge through a tronc the payslip should make that clear too.

Is cash tip income taxable?

Yes - all tips are taxable as employment income. Cash tips paid directly by customers should be declared on Self Assessment if your employer does not run them through a tronc. Tronc-administered tips are taxed at source via PAYE.

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PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, payroll, accounting, pension, benefits or employment advice. Always verify your payslip, tax code, deductions and take-home pay with your employer's payroll department, HMRC, your pension provider, a qualified accountant, tax adviser or another appropriately qualified professional.