Accountants for Hospitality Businesses

In the hospitality business, excellent customer service and attention to detail are key to success. That is why you deserve the same level of quality when it comes to hospitality accounting.

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Welcome to Audtax, specialist hotel and hospitality accountants, London

At Audtax, we count many large, London-based hospitality businesses among our valued clients. We offer specialist accounting services for hotels, restaurants, pubs and leisure chains to ensure they protect their assets, remain compliant, achieve their growth ambitions and reach their financial potential.

We can help your hospitality/leisure business to establish robust accounting systems with services such as bookkeeping, payroll and management accounting. Our team has a high level of hospitality-specific tax expertise, and we will work hard to identify reliefs to help boost your profits.

Please get in touch to find out more about our specialist accountant services for the hospitality and leisure sector and to book a free consultation.

Why use a specialist hospitality and leisure sector accountant?

Running a hospitality/leisure business is more than just a full-time job. Your spare time is probably scarce, and it can soon be eaten up by mounting accounting tasks. The services of a professional accountant, such as Audtax, allow you to gain control of your finances and save time to focus on strategic growth, customer service and hotel operations.

Specialist hospitality accountants have a deep understanding of the industry, which means they can offer specific advice on areas such as VAT on food or tax. For example, Audtax can provide tailored advice to ensure you take advantage of your Annual Investment Allowance (AIA) and other tax reliefs available to the hospitality sector.

Audtax accounting services for the hospitality industry

As accountants for the hospitality sector, Audtax can offer a comprehensive range of accounting services to help hotels, pubs, and restaurants thrive. Our hospitality clients have access to our expert team and rely on us to keep their accounts in great shape all year round.

Tax services

Tax is complex, and it’s easy to miss out on valuable savings. We have an in-depth knowledge of UK tax law and can provide valuable advice to keep your liability at a minimum.

Our tax services include Corporation Tax, VAT returns and personal tax returns to ensure you remain compliant and save as much of your company profit and personal income as possible.

Bookkeeping

It’s essential to keep cash flowing in any business, but in the hospitality industry, it is absolutely essential to cover operational costs such as food, overheads and salaries.

The only way to keep a track of your hotel/restaurant income and expenditure is with disciplined bookkeeping. We can take on your daily bookkeeping as part of our hospitality accounting service to give you an accurate view of your business finances at all times and ensure you don’t run into financial difficulties.

Cloud accounting software

Audtax uses the latest cloud accounting software, such as Xero and Quickbooks, to manage the accounts of our hospitality clients. These remarkable accounting tools can transform the way you manage your finances, keeping you up-to-date with your accounts in real-time, anywhere and on any device.

Management accounting and business advisory services

Audtax can provide monthly or quarterly financial reports to aid successful budgeting, timely investments and steady cash flow. Our reports track company performance in relation to your KPIs and financial goals, enabling more profitable business decisions.

Our advisory services can help with all aspects of financial management, including strategic planning, financial analysis and risk management, to protect your assets and put your company in the best position for business growth.

Corporate finance advice

For larger, established hotel/leisure chains, Audtax can provide support on disposals, acquisitions and business sales. We can advise on funding, restructuring debt arrangements to reduce liabilities, or devising strategies for tax efficiency through the use of investment vehicles such as trusts, holding companies or joint ventures.

Accounting for hospitality and leisure sector start-ups

As a hospitality start-up, it pays to invest in the services of an accountant right from the beginning. We can guide you on the pros and cons of the different business structures available to you, such as a limited company or limited liability partnership (LLP). We’ll help you to put robust accounting systems in place, ensure you meet your new tax obligations as well as offer advice on raising finance.

FAQs about hospitality accounting

By partnering with a hospitality sector accountant,  can be more confident that their business is running smoothly, and they can make sound financial decisions with peace of mind. Here are some frequently asked questions:

Can you help my hospitality and leisure business plan for unprecedented events?

Audtax can provide you with monthly or quarterly financial information to monitor business performance and enable accurate forecasting. This will enable you to mitigate financial risk, ensuring you are in the best possible financial position should the worst happen.

Do I need to pay VAT on my restaurant sales?

Do you need to pay Value Added Tax (VAT) when selling food from your restaurant? This depends on whether the food is served cold or hot. Generally, zero-rated VAT applies to most foods and drinks for human consumption, however, some items are always standard-rated – such as catering services, alcoholic drinks, confectionery, crisps and savoury snacks, hot takeaways, soft drinks and mineral water. Restaurants must always charge VAT on all food consumed in the premises or in communal areas designated for customers. On the other hand, no VAT is required when selling cold takeaway food unless it is meant to be eaten in a designated area. Hot takeaways and home deliveries are always subject to VAT charges.

How do I pay myself from my company?

If you want to receive payment from your company, you have two options – salary or dividend. The tax implications for each option vary according to the amount of payment. At AudTax we can provide you with advice on the most advantageous combination and formulate a tailored tax plan. This way, you can ensure that you pay the least possible amount of tax overall.

Can I connect my till to accounting software?

Yes your till can be connected to accounting software like Xero which will import all the daily sales. Not all tills have this functionality so it is important to ensure you purchase the one which can be connected. Companies like Tevalis offer best tills which can easily be connected.

How to manage Tronc system?

A Tronc system is a way for businesses to distribute tips, gratuities and service charges to their staff fairly. It must be managed by an independent third party or staff member, not by the business itself. Crucially, payments made through a Tronc scheme are exempt from Employers’ and Employees’ National Insurance Contributions (NICs), representing potentially significant savings of over 25%.

Are capital allowances applied differently for hotels?

Commercial property owners, including hospitality businesses, may be eligible for capital allowances when they purchase, build or refurbish their premises. This could include items such as kitchen equipment, lighting, decor and fit-outs, as well as air conditioning systems and hot and cold-water systems. These allowances are available for both owned properties and those with longer leases.

The Annual Investment Allowance (AIA) is set to remain at £1m per year for 2023/24, allowing hotels, restaurants, pubs and the like to deduct 100% of costs from their taxable profit. To ensure your company receives what it is entitled to, talk to our specialist hospitality tax accountants today.

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Why choose AudTax as your Hospitality accountant?

Audtax is dedicated to delivering quality accounting services to our hospitality clients in London. Our diverse accounting experience and expertise enable us to offer a full range of services, from daily bookkeeping to corporate finance. We pride ourselves on our knowledge of finance in the hospitality and leisure sector and will work hard to steer your company to greater profitability.

Please get in touch to book a free consultation to discuss our specialist services for hospitality businesses

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