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.

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 for more detail about your duties as an employer for pension purposes. Auto enrolment Pension

Accountancy services for restaurants

Our team of accountants for restaurants can provide a range of services to your business from incorporation to on-going bookkeeping