If a payment is made through the trunk system, it may be exempt from national insurance premiums if: A trunk is a special wage agreement that allows companies in the hospitality and restaurant and leisure sector, such as bars, restaurants, hotels or casinos, to fairly distribute staff advice, tips and service charges given by customers. The word has its roots in the 1920s in France, where “poor trunks”, or collection of crates, were used to accept donations for the poor. Income tax is always payable on the income of pending staff and, in certain circumstances, the trunche trunk may also be required to operate a PAYE system and deduct pre-payment income tax. The trunk must be registered with HMRC. There are many types of trunk, but all are operated by a Troncmaster. It is this person who decides how the money is distributed in the trunk. In some cases, they will also make payments to members of the system. More often, however, the Troncmaster will have the right to share a sum of money with the owners of the business, but the payment will not actually make. Mercer – Hole Audit and Business Advisory Partner Andy Turner has extensive experience in the hospitality and hospitality industry. One of its regular points of contact with clients is how to help them manage the fair distribution of tips, tips and service charges, while taking into account the tax considerations and commitments that accompany these payments.
Here, Andy gives an overview of the trunk system, a possible solution for the challenge of advice. At Buzzacott, we support a wide range of businesses in the hospitality and restaurant sector by acting as trunkmaster, from bars and restaurants to hotels and casinos. Our trunks are fully transparent, fully meet HMRC requirements, offer an exemption from national insurance premiums and offer significant savings to employers and employees. Whether you`re a new or established company, we`ll help you implement and implement your custom trumaster program. As a general rule, a trunk is set up to take advantage of favourable rules that allow, under certain conditions, the payment of payments from the trunk without contributions to social security. A properly exploited trunk puts the employer and worker in the same position as when a client leaves a cash board and the employee pays the correct tax on the advice to HMRC. Employers and employees together pay almost 26% more tax on the same funds when distributed in the absence of basic rules.