Restaurants, cafes and takeaways juggle cash and card sales, staff rotas, tips, stock and VAT, all on margins that leave little room for error. Messy figures make it hard to know whether a site is really making money.
We work with hospitality businesses across the UK, keeping the books tidy, the VAT and payroll right and the numbers clear enough to make good decisions.
The tax challenges restaurants and takeaways face
- VAT on food and drink, which has tricky rules between hot, cold, eat in and takeaway
- Cash and card sales that must reconcile accurately
- Payroll for shift staff, including starters, leavers and pensions
- Handling tips and service charge correctly
- Tight margins that punish small bookkeeping errors
What we help with
- VAT returns with the right treatment for your menu
- Payroll for shift and part time staff
- Cloud bookkeeping that reconciles cash and card
- Year end accounts and company tax
- Clear figures on each site or service
- Advice on tips and service charge
Common mistakes to avoid
Getting VAT wrong between hot and cold or eat in and takeaway
Letting cash sales go unreconciled against the till
Running payroll late and upsetting staff
Not knowing the true margin once VAT and wages are taken out
Useful tax tips
- Reconcile your till, card and bank regularly so nothing slips
- Check the VAT treatment of new menu items before you launch them
- Keep payroll on a fixed cycle so staff are always paid correctly
- Review your gross margin monthly, not just at year end
Example scenario
A takeaway that finally saw its real margin
A busy takeaway felt successful but never knew its true profit. We set up clean bookkeeping, reconciled cash and card, applied the correct VAT treatment and produced monthly figures. The owner could finally see the real margin and adjusted pricing and portion costs to protect it.
Frequently asked questions
How does VAT work on food?
It depends on whether food is hot or cold and eaten in or taken away, which makes hospitality VAT tricky. We apply the correct treatment for your menu.
Can you run our payroll?
Yes. We handle payroll for shift and part time staff, including starters, leavers, pensions and real time reporting to HMRC.
Do you help with tips?
Yes. We advise on the correct treatment of tips and service charge so you stay compliant.
Are you UK wide?
Yes. We support hospitality businesses across the UK.