Hospitality Accountant London | Restaurants, Pubs & Hotels | Chartered | LOYALS
Hospitality Accounting Specialists

Your Margins Are Tight Enough.Don't Let Bad Accounting Make Them Tighter.

Tipping Act compliance, employer NI increases, business rates changes, seasonal cash flow โ€” the regulatory pressure on hospitality has never been higher. We handle the numbers so you can focus on the service.

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โญ 4.8โ˜… Google Rating
๐Ÿ‘ฅ 500+ London Clients
๐Ÿ’ท ยฃ500K+ Recovered
๐Ÿ›๏ธ Chartered Accountants

Why Hospitality Needs Specialist Accountants

Running a restaurant, pub, or hotel is not the same as running a standard business. The compliance landscape is more complex, the margins are thinner, and the regulatory changes keep coming. Here is what makes hospitality accounting different.

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Tipping Act 2024 Compliance

Since 1 October 2024, employers must pass 100% of tips to staff without deductions, maintain written tipping policies, and keep records for three years. Non-compliance risks Employment Tribunal claims of up to ยฃ5,000 per worker. You need proper systems in place.

๐Ÿ’ฐ

Employer NI Increase โ€” April 2025

Employer National Insurance rose from 13.8% to 15% and the threshold dropped from ยฃ9,100 to ยฃ5,000. UKHospitality estimates this costs the sector ยฃ3.4 billion, with around 800,000 part-time workers newly dragged into the NI threshold for the first time.

๐Ÿช

Business Rates Relief Changes

The retail, hospitality and leisure relief dropped from 75% to 40% for 2025/26 and ends entirely from April 2026. It will be replaced by permanently lower multipliers, but many venues will face higher bills โ€” particularly after the new property revaluations take effect.

๐Ÿ“‰

Seasonal Cash Flow Management

January is quiet but VAT is still due. Summer is busy but you need to bank reserves for winter. Hospitality cash flow is uniquely cyclical, and without proper forecasting, profitable months get swallowed by unprofitable ones.

๐Ÿ‘ฅ

High Turnover Payroll Complexity

Variable hours, zero-hour contracts, seasonal workers, student staff, agency temps โ€” hospitality payroll is more complex than almost any other sector. The National Living Wage at ยฃ12.21 and upcoming Employment Rights Bill reforms add further complexity.

๐Ÿงพ

VAT on Food vs Alcohol

Hot food is 20% VAT. Cold takeaway food is zero-rated. Alcohol is always 20%. Every pub meal, every takeaway order, every coffee shop transaction needs correct VAT categorisation. Getting it wrong is one of the most common triggers for HMRC enquiries.

Who We Help

From a single-site cafe to a multi-venue restaurant group, LOYALS provides the specialist accounting that hospitality businesses across London need to stay compliant and profitable.

๐Ÿฝ๏ธ Independent Restaurants
๐Ÿบ Pub Owners & Publicans
๐Ÿจ Boutique Hotels & B&Bs
โ˜• Cafes & Coffee Shops
๐Ÿณ Catering Companies
๐Ÿšš Food Trucks & Street Food
๐Ÿธ Bars & Nightclubs
๐Ÿ• Takeaway & Delivery Kitchens
๐Ÿ˜๏ธ Restaurant Groups
๐ŸŽ‰ Event Catering & Hospitality

Hospitality Accounting Services

Hover or tap each card to see how we help your venue stay compliant and profitable.

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Tipping Act Compliance

Written policies, fair allocation systems, and full record-keeping

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Tipping Act Compliance

  • Written tipping policy creation
  • Fair allocation framework setup
  • Three-year record-keeping systems
  • Agency worker tip inclusion
  • Employment Tribunal risk reduction
๐Ÿ’ท

Tronc Scheme Administration

Tax-efficient tip distribution that saves you employer NI

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Tronc Scheme Administration

  • Independent troncmaster arrangement
  • Employer NI savings on tips
  • PAYE compliance for tronc payments
  • Monthly tronc reporting and records
  • Tipping Act-compliant distribution
๐Ÿ“Š

Cash Flow Forecasting

12-month rolling forecasts built for seasonality

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Cash Flow Forecasting

  • Rolling 12-month cash flow models
  • Peak vs quiet period planning
  • VAT payment timing strategies
  • Supplier payment optimisation
  • Capital expenditure planning
๐Ÿ‘ฅ

Hospitality Payroll

Variable hours, tips, NI โ€” all handled seamlessly

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Hospitality Payroll

  • Variable hours payroll processing
  • NLW/NMW compliance monitoring
  • Auto-enrolment pension management
  • Zero-hour and agency staff handling
  • RTI submissions and payslip generation
๐Ÿงพ

VAT for Hospitality

Food, drink, takeaway โ€” every rate handled correctly

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VAT for Hospitality

  • Food vs alcohol VAT categorisation
  • Flat Rate vs Standard Scheme analysis
  • Takeaway vs dine-in VAT treatment
  • Quarterly VAT return preparation
  • EPOS configuration advice
๐Ÿช

Business Rates Advice

Maximising relief and planning for 2026 changes

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Business Rates Advice

  • 2025/26 RHL relief claims (40%)
  • 2026 revaluation impact assessment
  • New multiplier planning
  • Small business relief checks
  • Rateable value appeal guidance

Regulatory Changes Hitting Hospitality โ€” Timeline

The regulatory pressure on hospitality businesses has been relentless. Here is a timeline of changes affecting your bottom line and what to do about each one.

1 October 2024

Tipping Act Now in Force

The Employment (Allocation of Tips) Act 2023 is now law. You must pass 100% of tips to staff without deductions, distribute within one month, maintain a written policy, and keep three years of records. Staff can request access to tipping records and bring Employment Tribunal claims (up to ยฃ5,000 compensation) if tips are withheld or unfairly allocated. Further measures from the Employment Rights Bill will require employers to consult staff on tipping policies from October 2026.

High Impact โ€” Immediate Action Required
April 2025 โ€” Now in Effect

Employer NI Increase & National Living Wage Rise

Employer National Insurance rose from 13.8% to 15% and the threshold dropped from ยฃ9,100 to ยฃ5,000 โ€” dragging around 800,000 hospitality part-time workers into the NI threshold for the first time. The National Living Wage increased to ยฃ12.21 per hour for workers aged 21 and over, adding approximately ยฃ1,400 per full-time employee annually. The Employment Allowance increased to ยฃ10,500 to partially offset costs for smaller businesses.

High Impact โ€” Review Payroll Costs Now
2025/26 Tax Year

Business Rates Relief Reduced to 40%

The retail, hospitality and leisure business rates relief dropped from 75% to 40% for 2025/26, capped at ยฃ110,000 per business. This is the final year of temporary relief before it is replaced by new permanent multipliers from April 2026.

Medium Impact โ€” Check Your Eligibility
April 2026 โ€” Coming Soon

New Business Rates Multipliers & MTD for Income Tax

Temporary RHL relief ends entirely and is replaced by permanently lower multipliers: 38.2p for small hospitality properties (under ยฃ51,000 rateable value) and 43p for larger venues. Pubs receive an extra 15% relief for 2026/27. However, property revaluations may push rateable values higher, offsetting the lower rates. Separately, Making Tax Digital for Income Tax launches for businesses earning over ยฃ50,000, requiring quarterly digital submissions.

Medium Impact โ€” Plan Ahead Now
Client Success Story

How a Soho Restaurant Saved ยฃ8,200 in Year One

A busy independent restaurant in Soho came to LOYALS struggling with cash flow despite strong covers. Their previous accountant had them on the wrong VAT scheme, was not reclaiming VAT on significant supply purchases, and had no system for tracking tips under the new legislation.

We moved them to the standard VAT scheme (saving over ยฃ4,000 annually in reclaimable input VAT), set up a compliant tronc scheme that saved ยฃ2,800 in employer NI on tips, identified ยฃ1,400 in unclaimed capital allowances on kitchen equipment, and built a 12-month cash flow forecast that eliminated their January cash crunch entirely.

Within six months, the owner told us it was the first time in three years he could see his actual profit clearly โ€” and it was higher than he thought.

ยฃ8,200 Saved in Year One
ยฃ2,800 NI Saved via Tronc Scheme
100% Tipping Act Compliant

Hospitality Accounting Packages

Every package includes chartered accountant expertise with deep hospitality knowledge. Available seven days a week โ€” because hospitality never stops.

Premium Accounting

ยฃ150/month
Best for: Established venues needing compliant, reliable accounts

Complete chartered accounting

Hospitality payroll (variable hours)

VAT returns with food/drink split

Tipping Act compliance setup

Self Assessment / Corporation Tax

Professional invoice management

Debt recovery service

Get Started โ†’
Most Popular for Hospitality

Business Mentor

ยฃ250/month
Best for: Growing venues wanting cash flow control and strategic guidance

Everything in Premium Accounting

Dedicated business mentor

Cash flow forecasting for seasonality

Profitability analysis by revenue stream

Tronc scheme administration

On-demand support when you need it

Scaling and second-site planning

Book Free Consultation โ†’

Business Growth Programme

ยฃ2,000/month
Best for: Multi-site operators and serious expansion plans

Everything in Business Mentor

Complete business team access

Marketing and brand support

Legal consultancy on demand

Office support and admin

Sales coaching and strategy

500+ client networking introductions

Scale Your Business โ†’

Self Assessment for Hospitality Sole Traders

If you run your venue as a sole trader, here are your two Self Assessment options.

Under ยฃ50,000 Turnover

ยฃ300 one-off

Full preparation and submission to HMRC, tax optimisation, expense review, HMRC correspondence handling, deadline management, and Payment on Account reduction claims.

ยฃ50,000+ Turnover

ยฃ600 per year

Everything in the ยฃ300 tier plus quarterly tax preparation and filing for Making Tax Digital compliance launching April 2026. We prepare and submit quarterly digital updates using your bank statements, plus your year-end declaration, proactive Payment on Account management, and pension planning advice.

What Our Hospitality Clients Say

Restaurant owners, publicans, and hoteliers across London trust LOYALS to keep their numbers clean and their businesses growing.

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"The Tipping Act was a minefield. LOYALS set up our tronc scheme, wrote the policy, trained our managers, and now we save over ยฃ200 a month in employer NI on tips alone. Best of all, our staff are happier because the system is transparent."

Marco D.

Italian Restaurant Owner, Soho

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"I was paying too much VAT for years because my previous accountant had me on the Flat Rate Scheme. LOYALS switched me to standard VAT and I'm now reclaiming thousands on my stock purchases. The cash flow forecasting has been a game changer for winter months."

Claire W.

Pub Owner, Camden

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"Running a boutique hotel with a restaurant means complex VAT, payroll for 25 variable-hours staff, and seasonal cash flow swings. LOYALS handles everything, including weekends which is when half our problems come up. Wouldn't go anywhere else."

Amit P.

Boutique Hotel, Shoreditch

โ˜…โ˜…โ˜…โ˜…โ˜…

"When the employer NI went up in April, LOYALS had already modelled the impact and helped us restructure our rota to minimise the damage. They also found ยฃ1,400 in kitchen equipment I'd never claimed capital allowances on. They actually care about our bottom line."

Rachel S.

Cafe Owner, Islington

Frequently Asked Questions

Answers to the most common hospitality accounting questions from restaurant owners, publicans and hoteliers across London.

How do I handle tips under the new Tipping Act 2024?+
Under the Employment (Allocation of Tips) Act, effective from 1 October 2024, you must pass 100% of all tips, gratuities, and service charges to your workers without any deductions โ€” including card processing fees. Tips must be distributed within one month of receipt. You need a written tipping policy that explains how tips are allocated, available to all workers including agency staff. Records must be kept for three years, and employees can request to see them. If an employee believes their tips have been withheld or unfairly distributed, they can bring a claim to an Employment Tribunal with potential awards of up to ยฃ5,000. LOYALS helps hospitality businesses set up compliant tipping policies, tronc schemes, and record-keeping systems to meet every requirement of the new law.
What is the best VAT scheme for my restaurant?+
For most restaurants, the standard VAT scheme works out better than the Flat Rate Scheme because you can reclaim VAT on food purchases, equipment, repairs, and overheads. The Flat Rate Scheme for catering is 12.5%, which can be simpler to administer but means you cannot reclaim input VAT. If your food and supply purchases are significant relative to turnover (as they usually are in hospitality), the standard scheme typically saves you more. LOYALS runs both calculations with your actual figures so you can see exactly which scheme puts more money in your pocket โ€” and we handle the transition if a switch makes sense.
Can I claim tax relief for kitchen equipment?+
Yes. Kitchen equipment qualifies for capital allowances under the Annual Investment Allowance, which allows you to claim 100% tax relief on qualifying purchases up to ยฃ1 million per year. This covers commercial ovens, fridges, freezers, dishwashers, extraction systems, EPOS systems, bar equipment, furniture, and renovation fixtures. If you have purchased equipment in recent years without claiming allowances, LOYALS can review previous returns to identify missed claims and submit amendments to HMRC to recover overpaid tax.
What is a tronc scheme and does my venue need one?+
A tronc is a formal arrangement for collecting and distributing tips and service charges, administered by an independent troncmaster rather than the employer. The key advantage is that tips distributed through a properly constituted tronc are exempt from employer National Insurance contributions, which can save your business thousands each year. Under the Tipping Act 2024, tronc schemes remain valid but must still comply with the fair allocation requirements. If your venue regularly receives tips โ€” whether cash, card, or through service charges โ€” a tronc scheme almost certainly makes financial sense. LOYALS sets up and administers compliant tronc arrangements that maximise your NI savings while satisfying the new legislation.
How has the employer NI increase affected my business?+
From April 2025, employer NI rose from 13.8% to 15% and the threshold dropped from ยฃ9,100 to ยฃ5,000. For hospitality businesses with many part-time and casual staff, this is particularly painful because workers who previously fell below the NI threshold are now subject to contributions. An employee earning ยฃ30,000 now costs an additional ยฃ866 in NI compared to the previous year. However, the Employment Allowance increased to ยฃ10,500, which means some smaller venues with fewer staff may see little or no increase. LOYALS models the exact impact on your specific payroll and advises on strategies to manage costs โ€” from rota optimisation to salary sacrifice schemes.
Do I pay VAT differently on food and alcohol?+
Yes, and this is where many hospitality businesses make expensive errors. Hot food served on premises or as takeaway is standard-rated at 20%. Cold takeaway food such as sandwiches and salads is zero-rated. All alcoholic drinks are standard-rated at 20% regardless of how they are served. If your venue serves a mix of hot food, cold food, and drinks, each transaction needs correct categorisation. HMRC frequently enquires into hospitality VAT returns where the split between zero-rated and standard-rated supplies looks unusual. LOYALS ensures your EPOS system is correctly configured and your quarterly returns accurately reflect the breakdown.
What is changing with business rates for hospitality?+
For 2025/26, hospitality properties in England receive 40% business rates relief, down from 75% last year, with a cash cap of ยฃ110,000 per business. From April 2026, this temporary relief ends entirely. In its place, the government is introducing permanently lower multipliers for retail, hospitality and leisure properties: 38.2p for properties under ยฃ51,000 rateable value and 43p for those between ยฃ51,000 and ยฃ499,999. Pubs receive an additional 15% relief for 2026/27. However, the April 2026 property revaluation may increase your rateable value significantly, particularly if your property has recovered well since the pandemic. LOYALS helps you understand the net impact on your specific premises and advise on any available appeals or reliefs.
How do I manage cash flow during quiet months?+
Seasonal cash flow is one of the biggest killers in hospitality. The solution is not hoping for a busy December to bail you out โ€” it is building a rolling 12-month forecast that shows exactly when money comes in and goes out. LOYALS creates these forecasts using your actual historic data, factoring in seasonal patterns, rent quarters, VAT payment dates, and equipment replacement schedules. We help you set aside reserves during peak months, negotiate better supplier payment terms, and time major purchases to coincide with strong cash positions. Many clients tell us this visibility alone transforms how they run their business.
Can I use the Flat Rate VAT Scheme for my pub?+
Pubs can use the Flat Rate Scheme if their VAT-exclusive turnover is under ยฃ150,000. The flat rate for pubs is 6.5%. However, this means you cannot reclaim VAT on purchases. For most pubs with significant stock expenditure on beer, wine, spirits, and food supplies, the standard VAT scheme works out considerably better because the reclaimable input VAT on those purchases typically outweighs any flat rate saving. LOYALS runs both calculations with your real figures โ€” we frequently find pubs overpaying by ยฃ2,000 or more per year on the wrong scheme.
What expenses can I claim for my restaurant?+
Allowable restaurant expenses include food and drink stock, staff wages and employer NI, rent and business rates, utilities (gas, electricity, water), kitchen equipment and repairs, cleaning supplies and waste disposal, marketing and website costs, insurance premiums, professional fees (including accountancy), uniforms and laundry, staff training, EPOS system and card machine fees, delivery platform commissions, a proportion of mobile phone and vehicle costs used for business, and subscriptions to industry bodies. LOYALS typically identifies ยฃ3,200 in missed deductions for new hospitality clients through thorough expense reviews. If you think you might be under-claiming, a single consultation could pay for itself many times over.
Do I need separate accounts for delivery vs dine-in revenue?+
It is not a legal requirement, but tracking delivery versus dine-in revenue separately is essential for understanding profitability. Delivery platforms like Deliveroo, Uber Eats, and Just Eat charge commissions of 15โ€“35%, which dramatically reduces margins on those orders. Without separating these revenue streams, you cannot see which sales are genuinely profitable. LOYALS sets up your accounts to track revenue by channel โ€” dine-in, takeaway, delivery, private events โ€” so you can make informed decisions about pricing, platform selection, and whether investing in your own delivery operation makes financial sense.
How much does a hospitality accountant cost in London?+
LOYALS offers three packages designed for hospitality. Premium Accounting costs ยฃ150 per month and includes chartered accounting, payroll, VAT returns, Tipping Act compliance, and debt recovery. Business Mentor costs ยฃ250 per month and adds a dedicated mentor, cash flow forecasting, tronc scheme administration, and profitability analysis by revenue stream. The Business Growth Programme at ยฃ2,000 per month provides a complete business team with marketing, legal, and sales support for multi-site operators. For sole traders, Self Assessment starts from ยฃ300 one-off (under ยฃ50K turnover) or ยฃ600 per year with MTD quarterly filing. We are open seven days a week, including weekends โ€” because hospitality problems do not wait until Monday.

Serving Hospitality Across Every London Borough

From the fine dining restaurants of Mayfair to the independent pubs of Hackney, the boutique hotels of Shoreditch to the cafes of Camden โ€” LOYALS provides specialist hospitality accounting across every corner of London.

We work with hospitality businesses in Soho, Covent Garden, Shoreditch, Brick Lane, Camden, Islington, Borough Market, Brixton, Notting Hill, Kensington, Chelsea, Mayfair, Fitzrovia, Dalston, Peckham, Bermondsey, Clapham, Battersea, and every other dining and drinking destination across the capital. Based in King's Cross, we are a short journey from restaurants, pubs, and hotels in every London borough โ€” and our seven-day availability means we are there when you need us most.

Don't Let Accounting Eat Into Your Margins

Join 500+ London businesses who trust LOYALS for chartered accounting, business growth, and complete peace of mind with HMRC. Available seven days a week โ€” because hospitality never stops.

Book Your Free Hospitality Consultation โ†’

Or call us directly: 07450 258975 ย |ย  kris.nick@loyals.uk

Serving hospitality businesses across all London boroughs: Westminster, Camden, Islington, Hackney, Tower Hamlets, City of London, Southwark, Lambeth, Wandsworth, Hammersmith & Fulham, Kensington & Chelsea, Greenwich, Lewisham, Newham, Barnet, Brent, Ealing, Enfield, Haringey, Hounslow, Redbridge, Richmond, Waltham Forest, Croydon, Bromley, and beyond. Based in King's Cross, London N7 9DP.