Hospitality Industry Accounting & Tax Services in the UK

The UK Hospitality industry is one of the most challenging and operationally demanding sectors. Businesses face:

• tight margins
• high staff turnover
• fluctuating seasonal demand
• heavy reliance on cashflow
• complex VAT rules
• intense competition
• rising supply costs
• unpredictable economic conditions
• staffing shortages
• strict compliance and licensing obligations

Restaurants, cafés, takeaways, bars, hotels and catering businesses operate in a fast-paced environment where every day matters, and financial clarity is essential for survival and growth.

Hospitality is unique because:

• transactions happen quickly
• cash and card sales vary daily
• menu costing and profit margins require precise calculation
• waste, spoilage and shrinkage affect profit
• stock purchasing must be tightly controlled
• payroll is complicated due to shifts, overtime and tips
• VAT rules differ between food, drink and services
• compliance with HRMC and licensing bodies is essential

Audit Consulting Group specialises in supporting hospitality businesses with tailored accounting and financial management solutions designed to improve profitability, efficiency and compliance.

Who We Support in the Hospitality Sector

We work with businesses across the entire industry, including:

• Restaurants & fine dining establishments
• Cafés & coffee shops
• Takeaway shops & fast-food chains
• Pubs, wine bars & cocktail lounges
• Hotels, hostels & accommodation providers
• Bed & Breakfasts
• Holiday lets & short-term rental providers
• Catering companies
• Event venues & banquet halls
• Ghost kitchens & virtual restaurants
• Food trucks
• Franchise operations
• Hospitality staffing agencies

Each type of hospitality business has its own financial challenges — and we customise our accounting services accordingly.

Why Hospitality Businesses Need Specialist Accountants

Thin Profit Margins

The difference between success and failure can be a few percentage points.
Your numbers must be:

• accurate
• timely
• actionable

High-Volume Daily Transactions

Hospitality businesses process dozens, sometimes hundreds, of small transactions daily.
This requires:

• precise bookkeeping
• daily or weekly reconciliations
• POS system integration

Stock, Waste & Cost of Goods Sold

Stock must be carefully tracked due to:

• spoilage
• waste
• theft
• supplier price changes
• menu adjustments

Understanding COGS and Gross Profit Margin is essential.

Complicated Payroll

Hospitality payroll includes:

• multiple shifts
• overtime
• seasonal workers
• zero-hour contracts
• tips & service charges
• staff meals

Managing this manually is nearly impossible — you need specialist payroll support.

VAT Complexity

Food and hospitality involve multiple VAT rates:

• hot food
• cold food
• alcohol
• dine-in
• takeaway

VAT mistakes are extremely common — and costly.

Licensing & Compliance

Hotels and restaurants must keep financial records that match compliance obligations, such as:

• alcohol licensing
• health & safety
• fire safety
• insurance requirements
• room occupancy reports (for hotels)

We help ensure your records are audit-ready at all times.

Full Accounting & Bookkeeping Services for Hospitality

Bookkeeping & Reporting for Hospitality Businesses

Hospitality bookkeeping must be precise, frequent and adapted to:

• POS systems
• staff shifts
• stock rotation
• daily cash and card takings
• supplier invoices
• menu costing
• tips and gratuities

We provide:

Bookkeeping Services

• Bookkeeping
• Xero Bookkeeping
• QuickBooks Bookkeeping
• Sole Trader Bookkeeping
• Small Business Bookkeeping
• Payroll Bookkeeping
• Outsourced Bookkeeping
• Basic Bookkeeping
• Accounting Bookkeeping

We specialise in:

• reconciling POS systems (Square, Clover, Toast, Lightspeed, EPOS, etc.)
• tracking wastage and shrinkage
• managing supplier payments
• producing weekly/monthly performance reports
• analysing cost of goods & gross profit
• providing multi-site profitability analysis
• linking delivery platforms (Uber Eats, Deliveroo, Just Eat)

Bookkeeping Contracts

Many hospitality businesses work with contractors.
We offer:

• Bookkeeping Contract Templates
• Custom agreements

Management & Annual Accounts

We produce:

• detailed Management Accounts
• Annual Accounts
• Ltd Company Annual Accounts
• Companies House Filing

Our reports include:

• food vs drink profitability
• labour cost percentage
• overhead cost breakdown
• daily sales patterns
• stock movement analysis
• variance reports
• item-level menu performance

Tax Services for Hospitality Businesses

Hospitality businesses face heavy tax scrutiny due to:

• VAT structure
• employment rules
• property and equipment expenses
• fluctuating income
• stock write-offs

Audit Consulting Group handles all tax obligations to keep your business compliant and optimised.

CIS Services (for Hotels & Restaurants Using Contractors)

Hospitality often involves:

• building refurbishments
• kitchen upgrades
• outdoor seating installations
• facility improvements

We provide:

• CIS registration
• CIS filing
• CIS refunds
• CIS penalties & appeals
• CIS VAT compliance

Personal Tax & Self-Assessment for Hospitality Professionals

For:

• restaurant owners
• café operators
• chefs
• managers
• small hospitality businesses
• franchise partners

We offer:

• Personal Tax Filing
• Self-Assessment
• Tax Account Management
• Penalties & Appeals
• Making Tax Digital Compliance

Expenses may include:

• tools & uniforms
• travel
• training
• home office (for operators)

Small Business Tax Services

For small restaurants, cafés and caterers:

• Small Business Tax Returns
• Tax Planning
• Self-employed Registration
• New business tax setup

VAT Services for Hospitality

VAT is one of the most complicated areas of hospitality accounting.
We handle:

• VAT Registration
• VAT Deregistration
• VAT Filing & Submission
• VAT Reclaim & Refunds
• VAT Number Verification
• VAT Compliance & Advisory
• VAT for Specific Hospitality Sectors

Correct VAT handling prevents major HMRC issues.

Corporation Tax for Hospitality Businesses

We assist with:

• Corporation Tax Filing
• Corporation Tax Returns
• Corporation Tax Appeals
• Capital allowances for equipment
• Expense optimisation
• Corporation Tax Planning

Advanced Tax Planning

We provide long-term planning for hospitality business owners:

• Retirement tax planning
• Inheritance tax planning
• High-net-worth tax strategies
• Estate planning
• Penalty appeals

Payroll & Pension Services for Hospitality

Payroll in hospitality is complex due to:

• tips
• fluctuating hours
• overtime
• multiple positions per employee
• split shifts
• holiday pay calculations
• staff turnover

We offer:

Payroll Services

• Monthly Payroll
• Payroll for Part-Time & Seasonal Workers
• Payroll Software Solutions
• Xero / QuickBooks / Sage Payroll
• Outsourced Payroll Management
• Payroll for One Employee
• Payroll Reconciliation
• Payroll Setup & Implementation
• Contractor Payroll

Pension Services

• Pension Scheme Management
• Directors’ Pensions
• Pension Tax Advisory
• PAYE Registration & Filing

Company Formation & Governance

For new hospitality ventures:

• Company Formation
• Confirmation Statements
• EORI Registration (for imported equipment)

We help set up a strong legal and financial foundation.

Advisory Services for Hospitality Businesses

We provide strategic consulting for:

• menu costing & profitability
• supplier negotiation
• cashflow strategies
• restaurant expansion planning
• franchise growth support
• budgeting & forecasting
• labour cost optimisation
• waste reduction planning
• pricing strategy
• financial restructuring

Real Case Studies

Case Study 1 — Restaurant in Manchester

Problems: cashflow shortages, unclear menu profitability.
Solutions:

• menu costing
• weekly performance reports
• payroll optimisation
• VAT restructuring

Result: gross profit improved by 16%.

Case Study 2 — Hotel Chain in Birmingham

Problems: payroll complexity, multi-site reporting, corporation tax planning.
Solutions:

• integrated payroll
• consolidated management accounts
• asset depreciation planning

Result: smooth operations and significant tax savings.

Case Study 3 — Café Franchise

Problems: inconsistent bookkeeping and franchise-level reporting issues.
Solutions:

• standardised bookkeeping system
• monthly consolidated reports
• franchise tax planning

Result: stable financial structure across all locations.

Client Reviews

Hannah Lewis, Owner — Lewis Café House
“They completely transformed the way we understand our numbers. Highly recommended!”

Robert King, Director — King’s GastroBar
“Audit Consulting Group solved our VAT and payroll challenges quickly and professionally.”

Sienna Morgan, Manager — HotelVista UK
“Accurate reporting, helpful advice and excellent communication. Perfect for hospitality.”

FAQ

Do you work with small independent cafés?

Yes — we support all hospitality sizes, from micro-businesses to large chains.

Can you handle payroll for shift workers?

Absolutely — including overtime, tips, and variable hours.

Do you help restaurants with VAT complexities?

Yes — VAT for hospitality is one of our core specialisations.

Can you support multi-location hotels or restaurants?

Yes — we offer consolidated accounts and site-by-site profitability analysis.

Ready to Strengthen Your Hospitality Business with Professional Accounting?

Audit Consulting Group
+44 7386 212550
info@auditconsultinggroup.co.uk