TipJar, the digital tipping platform from BrewDog retail director James Brown and Rosa’s Thai co-founder Alex Moore, has received a clearance from HMRC that could see operators move away from the use of tronc systems.

With the authority’s approval, TipJar will become the only system of its kind in the UK through which staff can collect and pool cashless tips, removing the necessity of tronc systems in teams, venues and companies.

Should a business choose to hand over full control of tip management to staff via TipJar, they will not be held responsible for tax or NI contributions on the tips collected – which will be paid digitally by the customer, equivalent to cash, and wholly owned by the staff.

In bypassing the business in this way, teams will be able to access tips as quickly as 20 minutes after finishing a shift.

“We are delighted that HMRC agree with our view on how modern tipping can work better and work harder for both the employee and the business,” said Brown. “We hope this clearance will encourage more companies, and their employees, to drop old fashioned tronc systems, which are a headache to organise, costly to run and lack transparency.”

“Now more than ever, customers want to recognise great experiences and reward good service with a tip and, at the same time, fewer of us are using cash,” added Moore. “TipJar was designed to work like cash, so it facilitates instant reward and recognition, re-imagining the true purpose of leaving some money on the table by way of thanks in an increasingly digital world.”

The platform started rolling out to restaurants at the end of 2019, and currently partners with operators including BrewDog, Honest Burgers and Mission Mars.