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Part of Accotax, an ICAEW regulated firm. Offices in Morden, Croydon, Chelsea and Mitcham.

0203 4411 258[email protected]

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Accountants for restaurants and cafes

Hospitality runs on thin margins and big volumes. Clean daily records, the right VAT treatment and a payroll that keeps up with rotas are what protect the profit.

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  • Bookkeeping
  • VAT returns and registration
  • Payroll for limited companies

What does an accountant do for restaurants and cafes?

Restaurant and cafe accountants handle VAT on food and drink, the treatment of tips and service charges, daily takings, stock and payroll for a hospitality team. Most owners need the Complete package at £62.50 + VAT a month.

What is different for you.

The parts of the rules that matter most for this kind of company.

01

VAT on food and drink

Eat-in and hot takeaway food is standard-rated, while some cold takeaway items can be zero-rated. We set the right rate for every product line.

02

Tips and service charges

Employers must pass on tips fairly, and the treatment for tax and National Insurance depends on how they are paid. We set up the payroll so it is correct.

03

Cash and card takings

Daily takings must reconcile to the till, card settlements and the bank. We connect your EPOS to your books.

04

Stock and wastage

Food cost, wastage and gross margin are tracked monthly so pricing decisions are based on facts.

How the work differs for restaurants and cafes.

The parts of the job that matter most for this kind of company, and how we handle them.

01

Getting VAT right on every menu line

A restaurant sells a mix of products that can carry different VAT treatment: hot food, cold takeaway, soft drinks, alcohol, service charges and gift vouchers. Eat-in and hot takeaway food is standard-rated at 20%, so the rate is rarely the problem. The problem is classifying borderline items consistently and making sure the till is set up the same way.

We build a short product-to-VAT table for your menu, check your EPOS settings against it and reconcile each VAT quarter to your takings, so the return matches what the till recorded.

  • Product-by-product VAT table
  • EPOS settings checked
  • Quarterly reconciliation to takings
02

Tips, service charges and payroll

Tips belong to the workers, and since October 2024 employers must have a written policy and pass them on fairly. How a tip is paid, through the till, by card or in cash, decides whether it passes through payroll and what tax and National Insurance applies.

A hospitality payroll also has to cope with part-time staff, changing rotas, holiday accrual and a high turnover. We run the payroll weekly or monthly and check minimum wage compliance on each run.

  • Written tips policy
  • Weekly or monthly payroll
  • Minimum wage checked each run
03

Margins, stock and cash

A healthy restaurant watches gross margin by product, wastage and labour cost as a share of sales. We produce a monthly dashboard from your books that shows food cost, labour cost and prime cost, so you can adjust menu prices or portions while the quarter is still running.

Cash and card takings are reconciled daily or weekly, and card processor fees are booked separately so the bank always agrees to the ledger.

  • Food, labour and prime cost monthly
  • Daily takings reconciled
  • Card fees booked separately

The usual way, and ours.

Typical restaurant admin

  • Takings estimated at quarter end
  • Tips handled in cash with no record
  • Stock counted once a year
  • VAT worked out by hand

With us

  • Takings reconciled to the till every week
  • A written tips policy and clean payroll
  • Monthly food and labour cost view
  • VAT from the ledger, filed on time

Rules to watch.

Rule

Tips law

Since October 2024 employers must pass on all tips to workers and have a written policy.

Rule

Minimum wage compliance

Rota changes, uniform costs and deductions can push pay below the minimum, so payroll is checked each pay period.

Your year with us.

What happens, and when.

  1. DailyTakings recorded and reconciled.
  2. Weekly or monthlyPayroll run and tips paid out.
  3. QuarterlyVAT return and margin review.
  4. Year endStock valued, accounts and tax prepared.

Mistakes we prevent.

Avoided

Guessing at VAT on takeaway items

The wrong rate on a product line compounds across every sale.

Avoided

No written tips policy

It is now a legal requirement and an easy thing to be challenged on.

Avoided

Ignoring labour cost

Labour is usually the largest cost and the one that drifts without monthly review.

Services most restaurants and cafes use.

Service

Bookkeeping

Monthly books in Xero, QuickBooks or FreeAgent, ready for VAT and year end.

Service

VAT returns and registration

VAT registration, Making Tax Digital returns and scheme advice.

Service

Payroll for limited companies

Director and staff payroll, RTI filing, pensions and payslips.

Fixed fees for restaurants and cafes.

Prices exclude VAT. Final price depends on turnover and options.

Essential

Micro and new companies

£45.83a month + VAT

  • Statutory accounts
  • Corporation Tax return (CT600)
  • Confirmation statement
  • One director Self Assessment
  • Deadline reminders
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Recommended

Complete

Trading and online businesses

£62.50a month + VAT

  • Everything in Essential
  • Monthly bookkeeping
  • Quarterly MTD VAT returns
  • Director payroll and RTI
  • Quarterly review call
Buy onlineOr get a quote first

Growth

Growing, data-led teams

£75a month + VAT

  • Everything in Complete
  • Payroll for up to 5 employees
  • Priority accountant access
  • Quarterly tax planning
Buy onlineOr get a quote first

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Rated 4.9 out of 5.

“He took the time to explain every step of the process and made a complex situation much easier to understand.”
Hugo AlvarezGoogle review of Accotax
“They take the time to understand how our business works and what our needs are.”
Mael LeboucherGoogle review of Accotax
“Very prompt in responding to questions and patient with us even when we seem to be slow.”
Mansur LimanGoogle review of Accotax
“He took care of everything promptly and kept me informed throughout, which was greatly appreciated.”
SofiaGoogle review of Accotax
“It was a pleasure working with Anum on our accounts. The whole process was swift and effortless, and it was one less thing to worry about.”
Jamie FletcherGoogle review of Accotax
“The work was completed promptly, my tax return was successfully filed.”
Sergey MGoogle review of Accotax

Restaurants and cafes: questions.

Is VAT charged on takeaway food?

Hot takeaway food is standard-rated at 20%. Some cold takeaway food can be zero-rated, so the product mix matters. We check each item.

Accounts for restaurants and cafes, sorted.

Tell us about your company and we will confirm your fixed fee within one working day.

Get a quote WhatsApp us0203 4411 258