Running a restaurant or bar in itself is a challenging task where the business needs to provide quality food and excellent service, managing staff, health and safety and so on. On top of this, they need to maintain their books. Restaurant accounting is time-consuming due to the sheer volume of data and is also time-sensitive due to various filing deadlines. It is, therefore, crucial to ensure that the correct records are maintained to take the critical management decisions and at the same time to meet HMRC deadlines on time.
Our team of expert accountants works side by side with restaurants, takeaways, hotels, franchises to ensure that they maximize their profits. Working with a team of specialist accountants for restaurants, bars and hotels mean that you have access to expert advice and support that you can trust.
For any business, it is essential to ensure that books are maintained to a good standard for the smooth running of the business and to avoid unwanted HMRC compliance checks. Therefore, it is necessary to have Qualified Accountants for Restaurants so that you can keep your books up to date to a good standard.
At Martax, our specialist team of accountants for restaurants can offer you advice on vital areas of your business, including pricing strategies, maintaining margins, tax planning, and optimizing cash flows to improve the running and profitability of your business.
Our dedicated team of accountants for restaurants can take care of smooth transfers from another accountant if required. If you are starting up your business, we can assist you in our FREE CONSULTATION meetings in specific areas of business advisory, tax planning, and company formation.
Restaurant Taxes
When you are running a restaurant, you will have obligations to pay your taxes. There are mainly three types of taxes if you are running your business as a limited company.
Tax and NIC
If you would like to employ people in your restaurant, the first step would be to register your business with HMRC. Your business is required to deduct the right amount of taxes and national insurance from the employee's wages and pay this to HMRC. Being an employer, you will also be required to pay national insurance on behalf of your employer.
Our expert team at Martax can help you with all the compliance, including the following:
- Registration of your business with HMRC as an employer
- Producing payslips for employees weekly/fortnightly/monthly as required
- Calculating the right amount of tax and national insurance payable to HMRC
- Ensuring that all the relevant allowances are claimed when calculating tax/NIC liabilities
- Submission of your weekly/fortnightly/monthly payroll with HMRC
- Advice on how to make the payment to HMRC for the Tax/NIC due
Click on this link for more details about Tax and National Insurance rates applicable to your business and the related deadlines.
Tax and NIC Rates
Corporation Tax
If you are running your restaurant as a limited company, you will be required to pay corporation tax on your profits. If you are running your restaurant as a sole trader, this section will not be applicable. The current corporation tax rate is 19% for the companies with profits under £300,000 and 30% if the profits are above £300,000. The corporation tax is payable on your annual company profits, and the deadline to make the payment is nine months after the year-end.
At Martax, our team of qualified accountants for restaurants can help you with the following:
- Advice on claiming all the legitimate expenses of your restaurant
- Ensuring that all the allowances and relief are claimed
- Calculation of the right amount of corporation tax due
- How to make the payment of corporation tax
Please click on the link below for more details about corporation tax:
Corporation Tax Rates
How the profits are calculated for restaurant
VAT
The VAT compliance is only applicable if your business is registered for VAT. If your business's turnover (sales) is less than the current VAT registration threshold of £85,000, you are not required to register for VAT. However, you have the option to register your business for VAT if you wish to.
If your business turnover is above £85,000, you do not have any option but to register for VAT. Once you are registered for VAT, you will be required to charge VAT on your sales. You will be generally required to file your VAT Returns quarterly and pay any VAT due.
Please click on the link below for more details about:
VAT Rates and deadlines
How the VAT is calculated
In addition to the above, being an employer of a restaurant, you must offer a pension to your eligible employees. All employers must provide a workplace pension scheme. This is called 'automatic enrolment'. Please click on the link below:
VAT Rates and deadlines
How the VAT is calculated
In addition to the above, being an employer of a restaurant, you must offer a pension to your eligible employees. All employers must provide a workplace pension scheme. This is called 'automatic enrolment'. Please click on the link below for more detail about your duties as an employer for pension purposes.
How we can help
Our expert team of expert accountants for restaurants can assist you in:
