Accountants for Restaurants and Hospitality

Catering, meaning food and drink consumed on the premises, is standard-rated. Hot takeaway food is also standard-rated. Many cold takeaway foods are zero-rated, while confectionery, crisps, soft drinks and alcohol are standard-rated however they are sold. Till buttons and menu categories need to reflect this.

The Flat Rate Scheme has a specific percentage for catering. Whether it helps depends on your mix of zero-rated and standard-rated sales and your purchases.

Platform payouts are net of commission, adjustments and refunds. Sales should be recorded gross, with commission and fees as costs, and VAT on the platform's own invoices treated correctly. Reconciling weekly statements avoids understating turnover. Digital platforms also report seller information to HMRC under the platform reporting rules.

Since 1 October 2024, employers must pass all tips, gratuities and service charges to workers without deductions, distribute them fairly in line with the statutory code of practice, and have a written tipping policy. Tips paid through payroll are subject to income tax. Where a genuinely independent tronc is operated, employer and employee National Insurance may not be due.

A discretionary service charge is generally outside the scope of VAT; a compulsory one is part of the price and standard-rated.

Hospitality payroll involves variable hours, National Minimum Wage and National Living Wage checks, holiday pay for irregular-hours workers, staff meals and auto-enrolment. Errors in minimum-wage calculations, including deductions for uniforms, are a common enforcement area.

A restaurant company files statutory accounts at Companies House, normally nine months after its accounting reference date, and a CT600 within 12 months of the end of its Corporation Tax accounting period. Most smaller companies pay Corporation Tax nine months and one day after the period ends; the main rate is 25%, with the 19% small profits rate up to £50,000 and marginal relief between £50,000 and £250,000.

VAT registration is required once taxable turnover passes £90,000 in a rolling 12 months, or is expected to within 30 days. Paying any salary, including to a director, brings PAYE and Real Time Information reporting, and employing eligible staff brings automatic-enrolment pension duties. The confirmation statement is a separate annual filing.

Thresholds, rates and deadlines reflect the 2026/27 UK position at the content update date. Check current GOV.UK guidance, or ask us, before relying on them for your own company.

We start with a free consultation to understand how you invoice, buy, pay people and get paid. You then receive a written scope and fee before chargeable work begins, covering bookkeeping, VAT, payroll, year-end accounts, CT600 and director Self Assessment as agreed.

Advisory work such as management accounts, cash-flow forecasting, pre-year-end planning or specialist reliefs is quoted separately rather than assumed to be included. Where a question needs specialist legal or tax advice outside our scope, we say so.