"The full £1.60 price increase can go to staff tax-free through the tipping system. This means 47% more money for staff without the pub operator having to pay anything extra to HMRC" It's NI free not tax-free, Jim - even cash tips are taxable on the individual (their responsibility to declare them)
Ah yes I meant *tax free in terms of what gross sum the employer can pass on* but I'll look to see if that could be phrased better.
Strictly-speaking, from the employer's perspective, a tronc scheme is an Employer's NI dodge. The tax is the individual's liability, whether salary or tips. Re-reading it I see what you were getting at. The employee tax is never the employer's cost though, just their duty to deduct and pay over.