Accountants for restaurants and hospitality
Hospitality has thin margins and awkward tax rules, which is a difficult combination. Most of the problems we are asked to fix come from the same handful of areas.
AccountsHelp provides accounting and tax services to restaurants, cafes, takeaways and hospitality businesses across the United Kingdom, covering tips and tronc arrangements, VAT on food and drink, stock and wastage, and payroll for shift-based teams.
Where restaurants and hospitality need more than generic accounting
Tips and tronc arrangements
How tips are collected and distributed changes their National Insurance treatment. A properly run tronc can be efficient, but it has to be genuinely independent of the employer to work. Informal arrangements often are not.
VAT on food and drink
The rules distinguish hot from cold, eat-in from takeaway, and catering from plain supply. The boundaries are narrow and get tested. Getting the liability wrong across thousands of small sales adds up quickly.
Stock, wastage and gross margin
Gross margin is the number that tells you whether the business works. Tracking stock and wastage properly is what makes that figure trustworthy, and it is usually the first thing we put right.
Payroll for shift teams
High turnover, variable hours, under-18s and students all complicate payroll, alongside National Minimum Wage compliance where accommodation offsets or unpaid trial shifts are involved.
Cash and takings controls
Where takings include cash, simple controls and reconciliation protect you if HMRC ever asks. Hospitality attracts attention, and good records are the whole defence.
The service that usually fits
Every package is an all-inclusive fixed monthly fee, agreed before we start, with no hidden charges at the year end. We work online with clients right across the UK.
Small limited companies and start-ups →
Starting a new business or running an existing one brings a filing calendar that does not forgive late entries.
From £60 per monthSole traders and partnerships →
A dental practice, a car mechanic, a repair shop, an off licence, a plumber or a freelance writer. Whatever the trade, the books are your responsibility.
From £20 per monthSelf Assessment and landlord accounts →
HMRC requires a Self Assessment return if you are a director, shareholder, sole trader, receive untaxed income, or pay tax at the higher rate.
From £125 per yearQuestions from restaurants and hospitality
How are tips taxed in a restaurant?
It depends on how they are collected and shared. Tips paid directly to staff, tips run through the payroll, and tips distributed through an independent tronc are treated differently for National Insurance. The arrangement has to be genuinely independent to get the intended treatment, so it is worth reviewing rather than assuming.
Is all restaurant food standard rated for VAT?
No, and this is where mistakes are most common. The treatment depends on whether food is hot or cold, eaten in or taken away, and whether it counts as catering. The boundaries are narrow, and an error repeated across thousands of small transactions becomes a large assessment.
Can you handle payroll for a large shift-based team?
Yes. Payroll is included in our monthly packages, with additional employees charged at £5 per month each. Variable hours, high turnover and National Minimum Wage compliance are all normal for hospitality.
What records should a restaurant keep?
Daily takings with a clear split between cash and card, supplier invoices, stock counts and wastage records, and full payroll records. Hospitality attracts more HMRC attention than most sectors, and consistent records are what protects you.
General information about how we work with this sector, not advice for your circumstances. Any tax figures mentioned were checked against gov.uk and are set out with their sources on our tax dates and rates page.
Talk to someone who already knows the sector
Tell us about the business and we will tell you what you actually need, and what you do not. The first consultation is free and carries no obligation.
Other sectors we work with
Dentists and dental practices →
Dentistry is one of the sectors where generic accounting genuinely falls short. The mix of NHS and private income, the way associates are engaged, and the scale of equipment spending all change how the numbers work.
Contractors and freelancers →
We have worked with contractors online for more than ten years. The questions are consistent, and getting them right early is worth far more than getting them right at the year end.
Landlords and property →
Property is the area where the rules have changed most, and where we most often find relief that has been missed in earlier years. Two significant changes are landing now.