Accountants for restaurants and takeaways
Busy tills, card machines, staff on changing shifts and VAT that depends on how the food is served. We look after the books, payroll and VAT for restaurants, cafés and takeaways, so you can stay in the kitchen.
ACCA qualified accountants with over 20 years in practice
Daily takings and records
Till and card machine
We match your till reports and card machine payouts to the bank, so every day's takings are counted once and only once.
Proof HMRC expects
Receipts for goods and stock, bank statements, sales invoices, till rolls and bank slips.
How long to keep them
At least 5 years after the 31/1 deadline for the tax year.
Stock and supplies
Food and drink stock you buy for the business is an allowable cost.
VAT on food, in plain words
If you are VAT registered, the rate depends on where the food is eaten and whether it is hot. Hot means above the temperature of the air around it.
| What you sell | VAT |
|---|---|
| Food and drink eaten on your premises | Standard rate |
| Hot takeaway food | Standard rate |
| Cold takeaway food, such as cold sandwiches | Zero rate, unless it is a type that is always standard rated |
| Crisps, sweets and some drinks, including bottled water | Standard rate, even cold and to take away |
Payroll when hours change every week
Each time you pay staff, the payroll report has to reach HMRC on or before payday, including staff paid less than £96 in a week. We run payroll from your hours for each pay period, so changing shifts and holiday cover are counted correctly.
Staff aged 22 up to State Pension age who earn at least £10,000 in a year must be put into a workplace pension, within 6 weeks of meeting the criteria. We keep an eye on that as hours go up and down.
Tips and tronc
By law, all tips must go to workers without deductions, and the code of practice expects a written tipping policy and accurate records.
Tips shared through a tronc, a separate system for sharing out tips, have Income Tax taken off through pay. Staff who keep tips handed to them by customers report those to HMRC themselves.
Income Tax is always due on tips, and National Insurance may be too. Which applies depends on how your system works, so we set it up with you before the first payday.
VAT returns and Making Tax Digital
You must register for VAT when taxable turnover for the last 12 months goes over £90,000. Once registered, Making Tax Digital for VAT means keeping VAT records digitally and sending returns through compatible software. We keep the records, send the returns and tell you what to set aside each quarter.
More help
The tax rules on this page come from GOV.UK and HMRC guidance. Last checked .
Questions restaurant and takeaway owners ask us
Do I charge VAT on a cold sandwich to take away?
Usually not. Cold takeaway food is zero rated, as long as it is not a type that is always standard rated, such as crisps, sweets or bottled water.
What about the same food eaten at a table?
Food eaten on your premises is always standard rated, hot or cold.
Can I keep some of the tips for the business?
No. By law, all tips must be passed to workers without deductions.
My staff work different hours each week. Who goes into the pension?
Anyone aged 22 up to State Pension age who earns at least £10,000 in a year and works in the UK. When someone starts to qualify, you have 6 weeks to enrol them and write to them.
Do I need software for my VAT returns?
Yes. Making Tax Digital for VAT means keeping records digitally and sending returns through compatible software. We set it up and run it for you.
Get your restaurant's books in order
Tell us about your restaurant, café or takeaway and we will send you a quote. Or book a free call to ask about VAT or payroll first.