Delivery Platform Accounting for London Restaurants — Finally, an Accountant Who Gets It
Deliveroo commissions, Uber Eats VAT, Just Eat reconciliations, and HMRC's new reporting rules — we handle it all so you can focus on your kitchen.
HMRC Is Now Cross-Referencing Your Delivery Platform Data
From January 2024, Deliveroo, Uber Eats, and Just Eat are legally required to report all seller income directly to HMRC under the new Digital Platform Reporting Rules. This isn't a proposal — it's happening right now. Every order, every payout, every refund — the platforms are handing it all over.
The first batch of reports was submitted in January 2025, covering the entire 2024 calendar year. HMRC's Connect system — their AI-powered data-matching engine — is now comparing what platforms report against what restaurants declare on their tax returns. Where the numbers don't match, investigations follow.
The enforcement is already well underway. HMRC has flagged over 4,000 traders for suspected underreporting and notified 500 tax agents about clients with discrepancies. Raids have intensified across London, Manchester, and other major cities, with inspectors seizing records and launching criminal inquiries.
In one widely reported case, a takeaway owner was prosecuted for failing to declare £638,000 in Just Eat turnover, resulting in over £90,000 in evaded VAT and £68,000 in unpaid income tax. The owner received a suspended jail sentence and 200 hours of community service.
⚠️ Warning: If you're recording only the net amount Deliveroo or Uber Eats deposits in your bank — rather than the full gross order value — your records already don't match what HMRC has received from the platforms.
This isn't about catching criminals. Most of the restaurants flagged aren't deliberately evading tax — they're simply recording platform income incorrectly. The good news is that getting it right isn't complicated when you have an accountant who actually understands how delivery platform accounting works.
Three Platform Accounting Mistakes That Trigger HMRC Enquiries
These aren't obscure technicalities. They're the three errors we see in almost every restaurant that comes to us without specialist platform accounting — and they're exactly what HMRC's automated systems are now designed to catch.
Netting Commission Instead of Recording Gross Revenue
When Deliveroo takes 30% commission on a £100 order, they deposit £70 in your bank. Many restaurants record £70 as income. But HMRC requires you to record the full £100 as revenue, with the £30 commission as a separate business expense.
Getting VAT Wrong on Platform Commission Fees
All three platforms charge 20% VAT on their commission. On a 30% commission, that's an extra 6% — pushing your effective cost to 36% of the order value. If you're VAT-registered, you can reclaim this VAT. If not recorded properly, you're overpaying by thousands.
Failing to Reconcile Platform Payouts to Bank Deposits
Platform payouts don't match individual orders. Deliveroo pays fortnightly, Uber Eats weekly, Just Eat on varied schedules — each deducting commissions, refunds, promotions, and adjustments. Without proper reconciliation, your books always have unexplained gaps.
How LOYALS Makes Delivery Platform Accounting Painless
We don't just file your tax return and hope for the best. We build a complete accounting framework around your platform operations — so every order, every commission, and every payout is tracked, reconciled, and HMRC-ready.
Gross Revenue Recording
Every platform sale recorded at full value across Deliveroo, Uber Eats, and Just Eat — exactly as HMRC expects to see it.
Commission Tracking & VAT Recovery
Platform commissions separated, VAT identified, and input tax reclaimed on every fee — recovering thousands for VAT-registered restaurants.
Multi-Platform Reconciliation
Deliveroo, Uber Eats, and Just Eat payouts reconciled against bank deposits, with every refund, adjustment, and timing difference accounted for.
HMRC-Compliant Reporting
Your records aligned with what platforms report to HMRC — eliminating discrepancies before they trigger enquiries.
Mixed-Rate VAT Returns
Eat-in at 20%, cold takeaway at 0%, hot food at 20% — we handle the complex VAT split across dine-in, delivery, and collection channels.
EPOS Integration
Connected to your EPOS and accounting software (Xero, QuickBooks) so platform and in-house sales flow into one system automatically.
"Unlike most accountants, we understand the difference between what Deliveroo deposits in your bank and what you actually earned. That gap is where HMRC investigations start — and where most restaurants' accounting falls apart."
Do You Actually Know Which Platform Makes You Money?
Many restaurant owners assume Deliveroo is profitable because orders are flowing in. But when you strip out commissions, VAT on those commissions, packaging costs, and refunds, the picture often looks very different.
Example based on a £30 order with 30% commission — before food costs and overheads
That £30 order delivers just £16.80 before food costs. If your food cost is 30%, you're left with about £7.80 gross margin — before staff, rent, utilities, and everything else. Some platforms are more profitable than others: Just Eat typically charges lower commissions (14-18%) if you use your own drivers, while Deliveroo and Uber Eats sit at 25-35%. The difference over a year can be tens of thousands of pounds.
We don't just do your books — we give you the numbers that help you run a more profitable restaurant. That's the difference between an accountant who processes transactions and one who actually understands your business.
Tax Deductions London Restaurants Frequently Miss
With tight margins and rising costs, every legitimate deduction matters. HMRC allows hospitality businesses to deduct a wide range of business expenses — but only if they're properly recorded. Here are the deductions we most commonly recover for restaurant clients when they switch to LOYALS.
Staff Meals & Welfare
Shift meals are deductible — not personal costs
- Meals provided during shifts
- Staff drinks & refreshments
- Canteen & breakroom supplies
- Christmas party (up to £150/head)
- Trivial benefits under £50
Equipment & Repairs
Immediate deduction for repairs, capital allowances for improvements
- Oven & fridge repairs
- Extractor fan servicing
- Plumbing & electrical fixes
- EPOS hardware replacement
- Annual Investment Allowance on new kit
Packaging & Delivery Costs
Every container and bag is a deductible expense
- Takeaway containers & lids
- Carrier bags & wrapping
- Branded stickers & inserts
- Cutlery packs
- Thermal delivery bags
Hygiene & Compliance
Pest control, cleaning, and food safety costs
- Professional deep cleaning
- Pest control contracts
- Food hygiene certificates
- Fire safety inspections
- Health & safety training
Software & Subscriptions
Your tech stack is a business expense
- EPOS software licences
- Xero / QuickBooks fees
- Reservation systems
- Marketing platforms
- Wi-Fi & phone contracts
Marketing & Advertising
Every pound spent growing your business is deductible
- Google Ads & social media
- Menu design & photography
- Website hosting & updates
- Flyers & local advertising
- Influencer & PR costs
Did you know? Many restaurant owners miss £3,000-£8,000 in allowable deductions each year simply because expenses aren't categorised correctly. Uniform cleaning, training costs, professional subscriptions, energy efficiency improvements, and even accounting fees themselves are all deductible. LOYALS reviews every category during onboarding to make sure you're claiming everything you're entitled to.
Making Tax Digital: What London Restaurant Owners Need to Know
From April 2026, Making Tax Digital for Income Tax (MTD ITSA) is changing how self-employed restaurant owners report their earnings. If your gross income — that's turnover, not profit — exceeds £50,000, you'll be required to keep digital records and submit quarterly updates to HMRC using compatible software. This is the biggest change to personal tax reporting since Self Assessment was introduced.
For restaurant owners on delivery platforms, this is particularly significant. Your gross income includes the full value of every Deliveroo, Uber Eats, and Just Eat order — not just the net amount deposited in your bank. Many restaurants with seemingly modest bank deposits actually have gross turnovers well above the £50,000 threshold once platform sales are recorded correctly.
Income over £50,000
Mandatory digital records and quarterly HMRC submissions begin for sole traders and landlords earning above £50,000 gross.
Income over £30,000
Threshold drops to £30,000 — capturing many more restaurant owners, especially those on multiple platforms.
Income over £20,000
Further expansion to £20,000 threshold. Most active restaurant sole traders will be within scope by this point.
Under MTD, you'll need to submit income and expense summaries every quarter — by the 7th of the month after each quarter ends. Miss a deadline and you'll accumulate penalty points under HMRC's new points-based system. Reach four points and you're hit with a £200 fine, with further penalties for continued non-compliance.
The practical impact for restaurants is significant. Instead of gathering everything once a year for your tax return, you'll need to provide bank statements and records quarterly. The upside is that you'll have a much clearer picture of your tax position throughout the year — no more January surprises when your tax bill arrives.
How LOYALS handles MTD for restaurants: For self-employed clients with turnover of £50,000 or above, our £600/year Self Assessment service covers everything MTD requires — quarterly preparation and filing, MTD-compliant digital record-keeping, proactive Payment on Account management, and pension planning advice. You send us your bank statements every quarter, and we handle the rest. If your turnover is under £50,000, our £300 one-off Self Assessment service covers your full return including tax optimisation, expense review, and HMRC correspondence. Both tiers include year-round support.
Restaurant Accountants Serving Every London Borough
Based in King's Cross, we're centrally located to serve restaurant owners across all of London. Whether you're running a takeaway in Tower Hamlets, a fine dining restaurant in Westminster, a café in Hackney, or a multi-site operation spanning Islington and Camden — we understand the delivery platform landscape in your area and the specific challenges London hospitality businesses face.
London's restaurant sector contributes billions to the UK economy, with over 140,000 hospitality businesses registered nationally and a significant concentration in the capital. Rising food costs, staffing pressures, energy bills, and platform commissions make accurate accounting more important than ever. A specialist accountant isn't just a compliance requirement — they're a competitive advantage when margins are measured in single-digit percentages.
We work with restaurants at every stage — from newly opened kitchens registering for the first time, to established multi-site operations optimising their tax position across platforms. Our King's Cross office is open Monday to Friday 9am-6pm and Saturday to Sunday 10am-5pm, and you can reach us on WhatsApp anytime at 07450 258975.
Why London Restaurant Owners Choose LOYALS
WhatsApp Your Accountant
Message us like you message your suppliers. Got a question about a Deliveroo payout at 10pm? Send it over — we'll get back to you. No portals, no ticket systems, no waiting three days for an email.
Extended Hours Including Weekends
Monday to Friday 9am-6pm and Saturday to Sunday 10am-5pm. Restaurants don't close at 5pm on a Friday — and neither do we.
Integrated Legal Support
Employment contracts, licensing queries, supplier disputes, and lease negotiations — Business Mentor and Growth Programme clients get legal support without separate solicitor fees.
Chartered Accountants, Hospitality Expertise
We're chartered accountants with hands-on experience across London's hospitality sector — hospitality VAT, tronc schemes, platform accounting, and the cashflow challenges restaurants face daily.
Fixed Transparent Monthly Pricing
No surprise bills. No hidden fees. Premium Accounting from £150/month includes everything a platform-heavy restaurant needs: bookkeeping, VAT returns, annual accounts, and year-round HMRC support.
500+ Client Business Network
Our clients work with each other. Need a reliable supplier, contractor, or service provider? We connect restaurant owners across our network — growing your business through trusted introductions.
What Our Hospitality Clients Say
"Finally, an accountant who understands that my busiest month on Deliveroo doesn't mean my most profitable month. LOYALS showed me I was losing money on one platform and making strong margins on another. We saved over £8,000 in the first year — plus recovered £3,200 in VAT we'd been overpaying on commissions."
"We were terrified when HMRC sent a letter about our platform income. LOYALS stepped in, fixed our records going back two years, and negotiated with HMRC on our behalf. Turns out we'd been underreporting by accident — just netting commissions like everyone does. Absolute lifesavers."
"Three platforms, two EPOS systems, and a VAT return that used to take me days. LOYALS connected everything and now I just send bank statements once a month. The WhatsApp support is brilliant — I messaged on a Saturday about an Uber Eats invoice and had an answer within the hour."
Getting Started Takes 15 Minutes
Book Your Free Call
We review your current platform setup, accounting method, and identify any compliance gaps. Takes 15 minutes, costs nothing, no obligation.
We Create Your Compliance Plan
Platform reconciliation framework, VAT structure review, HMRC-ready reporting setup, EPOS integration, and MTD preparation if you're approaching the threshold.
We Handle Everything
Monthly reconciliation, quarterly VAT returns with mixed-rate accuracy, annual accounts, and year-round HMRC support. You cook, we count.
No obligation. No hard sell. Just honest advice from chartered accountants who understand delivery platforms.
Common Questions About Delivery Platform Accounting
Do I need to record the full order value or just what Deliveroo pays me?
+You must record the full gross order value as your income — that's what the customer paid. The commission Deliveroo deducts is a separate business expense. HMRC now receives the gross figures directly from the platform. If your tax return shows less than what Deliveroo reports, that discrepancy triggers enquiries. We handle this reconciliation automatically for every restaurant client.
Is VAT charged on Deliveroo and Uber Eats commission fees?
+Yes. All three major platforms charge 20% VAT on top of their commission. A 30% commission actually costs you 36% of the order value. If you're VAT-registered, you can reclaim this — but only if commissions are recorded as a separate expense with VAT correctly identified. Many restaurants miss this, costing thousands each year.
Can I claim back VAT on platform commissions?
+If your restaurant is VAT-registered, absolutely. You'll need valid VAT invoices from each platform and must record commission as a business expense with input VAT correctly allocated. At typical commission rates of 25-35%, the reclaimable VAT alone can amount to £5,000-£15,000 per year for busy restaurants.
What happens if HMRC finds a discrepancy between my returns and platform reports?
+HMRC will typically open a compliance check, starting with a letter. If the discrepancy appears deliberate, this escalates to a formal investigation with penalties of 30-100% of the tax owed, plus interest. In serious cases, criminal prosecution is possible. The best approach is proactive: ensure your records match platform data from the start. If you've already been contacted, speak to us immediately — early cooperation significantly reduces penalties.
Do delivery platform sales count toward the £90,000 VAT threshold?
+Yes. All sales through Deliveroo, Uber Eats, and Just Eat count toward the VAT registration threshold — currently £90,000 over a rolling 12-month period. You must count the full gross order value, not just the net amount after commission. Many owners creep over the threshold without realising because they're tracking bank deposits rather than gross sales. Late registration carries automatic penalties.
How do I reconcile platform payouts with my bank account?
+Platform payouts rarely match the sum of individual orders due to timing differences, deducted commissions, refunds, adjustments, and promotional contributions. You need detailed transaction reports from each platform matched against bank deposits. We use dedicated reconciliation processes that automatically match platform reports to bank entries — eliminating guesswork.
Should I use separate accounting codes for each delivery platform?
+Strongly recommended. Separate income codes for Deliveroo, Uber Eats, Just Eat, and direct sales let you track profitability per channel and make VAT returns cleaner. In Xero or QuickBooks, we set up tracking categories for each platform as standard during onboarding.
What records do I need to keep for HMRC?
+Keep all platform sales reports, bank statements showing platform deposits, VAT invoices for commission fees, refund records, packaging receipts, and EPOS records. HMRC requires these for at least six years. Digital records are preferred — especially with Making Tax Digital for Income Tax rolling out from April 2026.
How much does restaurant accounting cost with LOYALS?
+Premium Accounting starts at £150/month including bookkeeping, VAT returns, annual accounts, platform reconciliation, and HMRC support with extended hours and WhatsApp access. Business Mentor is £250/month. For self-employed owners, Self Assessment starts from £300 one-off (under £50,000 turnover) or £600/year for those above £50,000 who need quarterly MTD filing.
Can LOYALS integrate with my EPOS and delivery platforms?
+Yes. We work with Lightspeed, Square, iZettle, Clover, Epos Now and integrate with Xero or QuickBooks. We connect with Deliveroo, Uber Eats, and Just Eat merchant portals to pull transaction data automatically. Book a free call and we'll show you how the integration works for your setup.
What is Making Tax Digital and how does it affect my restaurant?
+Making Tax Digital for Income Tax replaces the annual Self Assessment return with digital record-keeping and quarterly HMRC submissions. From April 2026, it's mandatory for sole traders earning over £50,000 gross — dropping to £30,000 in April 2027 and £20,000 in April 2028. For restaurant owners on delivery platforms, remember that your gross turnover includes full platform order values, not just net bank deposits. LOYALS handles all MTD filing as part of our Self Assessment service.
What tax deductions do restaurants commonly miss?
+Staff meals during shifts, equipment repairs and maintenance, packaging and disposable costs, pest control contracts, software subscriptions (EPOS, accounting, reservations), marketing and advertising spend, uniform cleaning, training costs, professional subscriptions, and energy efficiency improvements are all frequently overlooked. Many restaurants miss £3,000-£8,000 in deductions annually. We review every expense category during onboarding.