Specialist Accountants for London'sRestaurants, Pubs, Bars & Cafés
Running a hospitality business means working evenings and weekends. So do we. LOYALS offers WhatsApp support, extended hours, and specialist expertise for London's food and drink operators.
London Hospitality Is Facing Its Most Complex Compliance Period in Decades
Five regulatory changes have landed simultaneously. If you run a restaurant, pub, bar or café in London, here is what your business needs to address right now.
Employer NICs Rose to 15% from April 2025
The employer National Insurance rate jumped from 13.8% to 15%, and the threshold dropped from £9,100 to £5,000. For hospitality businesses with large, low-wage workforces, this means significantly higher payroll costs on every single employee.
Up to 50% increase in NIC per minimum-wage workerTips Act Now Mandates 100% Tip Pass-Through
The Employment (Allocation of Tips) Act 2023 came into force in October 2024. Employers must distribute all qualifying tips to workers in full with no deductions, maintain a written tipping policy, and keep detailed allocation records. Workers can claim up to £5,000 per tribunal case for non-compliance.
Compensation up to £5,000 per claim at tribunalMaking Tax Digital for Income Tax — April 2026
Sole traders and landlords earning over £50,000 must file quarterly digital updates with HMRC from April 2026. If you operate a restaurant or café as a sole trader above this threshold, you need MTD-compatible software and processes in place well before the deadline.
Quarterly filing starts April 2026Business Rates Relief Halved from 75% to 40%
Hospitality business rates relief dropped from 75% to 40% from April 2025, capped at £110,000 per business. Many restaurant and pub operators saw their rates bills increase dramatically. A full business rates revaluation is also due in April 2026.
Relief cut from 75% → 40%Delivery Platforms Now Report Your Data to HMRC
Deliveroo, Uber Eats, and Just Eat now share operator sales data directly with HMRC. Any discrepancy between your reported turnover and platform records will trigger an automatic review. Accurate reconciliation of platform sales is no longer optional — it is essential.
HMRC cross-referencing platform dataSpecialist Hospitality Accounting — Every Service Your Business Needs
From complex VAT returns to tronc scheme management, LOYALS provides the full range of accounting and advisory services built specifically for London's food and drink operators.
VAT Returns & Planning
Navigating eat-in versus takeaway rules, hot and cold food distinctions, and service charge VAT treatment. We ensure every return is accurate and filed on time, while identifying planning opportunities to manage your cash flow.
Tronc Scheme Setup & Management
Tax-efficient tip distribution that saves employer NIC on every pound distributed through the tronc. We set up compliant schemes, appoint troncmasters, and ensure full compliance with the Employment (Allocation of Tips) Act 2023.
Payroll Management
Managing mixed workforces with full-time, part-time, zero-hours and seasonal staff. We handle Real Time Information submissions, auto-enrolment pension compliance, and the new tipping legislation requirements.
Management Accounts & Forecasting
Monthly profit visibility for tight-margin businesses. We provide food cost analysis, labour cost tracking, and cash flow forecasting so you always know where your business stands and can plan with confidence.
Making Tax Digital Compliance
Full MTD setup including software selection, digital record-keeping, and quarterly filing for sole traders over £50,000. We manage the entire process so the transition to quarterly reporting is seamless for your business.
Business Rates Advice
Rateable value review, relief applications, and preparation for the April 2026 revaluation. We help you challenge incorrect valuations and ensure you are claiming every available relief to keep your rates bill as low as possible.
Delivery Platform Accounting
Reconciliation of Deliveroo, Uber Eats, and Just Eat statements with your accounts. We ensure your reported turnover matches platform data, commissions are correctly expensed, and your records are audit-ready.
Legal & Business Advisory
Access to our legal partners for licensing applications, employment contracts, lease reviews, and dispute resolution. Our Business Growth Programme clients receive on-demand legal and strategic advisory as standard.
Hospitality VAT Is a Minefield. LOYALS Knows Exactly Where the Tripwires Are.
VAT errors are the single most common reason hospitality businesses face HMRC penalties. Here's what you need to understand — and why specialist expertise matters.
The Eat-In vs Takeaway VAT Rules That Catch Even Experienced Operators Out
The fundamental rule sounds simple: food eaten on the premises is standard-rated at 20%, while cold takeaway food is generally zero-rated. But the reality is far more complicated. A sandwich consumed in your café is standard-rated. The same sandwich in a bag, taken off-premises, is zero-rated. A hot pasty kept under a heat lamp is standard-rated, but one that was baked hot and has naturally cooled may not be.
For restaurants and cafés operating across dine-in and takeaway, splitting sales correctly between standard-rated and zero-rated is critical. Get it wrong, and you either overpay VAT (losing money) or underpay (risking penalties and interest). LOYALS ensures your EPOS system is configured to capture VAT correctly at the point of sale, and we review your split regularly to catch any drift before HMRC does.
Service Charges, Tips, and Tronc — Getting the VAT and NIC Treatment Right
Mandatory service charges added to a bill are part of the price of the meal and therefore subject to VAT at 20%. Voluntary tips paid directly to staff, however, are outside the scope of VAT. If your restaurant adds a discretionary service charge that passes through the business before being distributed to staff, the VAT and NIC treatment depends on the exact mechanism you use.
A properly managed tronc scheme ensures tips are distributed without attracting employer NIC — saving your business 15% on every pound distributed. But the scheme must be genuinely independent, with a troncmaster who is not a director or owner. LOYALS sets up tronc schemes that satisfy HMRC's independence requirements, manage the ongoing administration, and ensure you are fully compliant with both the VAT rules and the Employment (Allocation of Tips) Act 2023.
Delivery Platforms and HMRC Data-Sharing — What Restaurant Owners Must Do Now
Since 2024, platforms including Deliveroo, Uber Eats, and Just Eat are required to report operator sales data directly to HMRC. This means HMRC can now cross-reference the gross sales your platform reports against the turnover on your tax return. Any discrepancy — even an innocent one caused by timing differences or misunderstood commission netting — can trigger a compliance check.
The key risk for restaurant owners is reporting net income (after platform commission) instead of gross income with commissions separately deducted as expenses. LOYALS reconciles all delivery platform statements monthly, ensures gross turnover matches HMRC data, and maximises the deduction of commissions, packaging costs, and platform fees across your accounts.
How Much Are Your Employment Cost Increases Costing You?
Use our free calculator to see the impact of the 2025 NICs increase on your hospitality business — and discover how much a tronc scheme could save you.
We Work With Every Type of London Hospitality Business
Whether you run a fine-dining restaurant in Mayfair, a craft beer pub in Bermondsey, or a dark kitchen in Hackney, LOYALS provides specialist accounting tailored to your sub-sector.
Restaurants
Independent restaurants, fine dining, casual dining, and family-run eateries across every London borough. VAT complexity, tronc management, and food cost analysis are our speciality.
Pubs & Gastropubs
Traditional pubs, gastropubs, and craft beer venues. We handle wet and dry sales VAT splits, gaming machine licensing, and cellar management accounting.
Bars & Late-Night Venues
Cocktail bars, wine bars, late-night venues, and nightclubs. Late-night levy compliance, licensing requirements, and cash-handling procedures expertly managed.
Cafés & Coffee Shops
Independent cafés, speciality coffee shops, and brunch spots. VAT on eat-in versus takeaway, tip management for counter service, and seasonal cash flow planning.
Takeaways & Dark Kitchens
Delivery-only kitchens, traditional takeaways, and cloud kitchen operators. Delivery platform reconciliation, HMRC data-matching compliance, and commission expense optimisation.
Hotels & Boutique Venues
Boutique hotels, bed and breakfasts, and event venues with food and beverage operations. Multi-revenue-stream accounting, room vs F&B VAT, and furnished holiday let tax considerations.
No Other London Accountant Offers What LOYALS Provides for Hospitality
Most accountants treat hospitality like any other business. LOYALS is built for the unique challenges of running a restaurant, pub, bar or café in London.
| Feature | LOYALS | Typical Accountant |
|---|---|---|
| Weekend & evening availability | ✓ Mon–Fri 9–6, Sat–Sun 10–5 | ✗ Mon–Fri 9–5 only |
| WhatsApp support | ✓ Direct WhatsApp line | ✗ Email only, 2–3 day response |
| Tronc scheme expertise | ✓ Full setup, management & compliance | ✗ May refer to third party |
| Delivery platform accounting | ✓ Deliveroo, Uber Eats, Just Eat | ✗ You reconcile, they file |
| Making Tax Digital support | ✓ Full MTD setup & quarterly filing | ✓ Basic software setup |
| Marketing & growth support | ✓ Google Ads, SEO, social media | ✗ Not offered |
| Legal advisory access | ✓ Employment, licensing & lease | ✗ Not offered |
| Business growth programme | ✓ Full team for scaling operators | ✗ Not offered |
| Debt recovery service | ✓ £500K+ recovered for clients | ✗ Not offered |
| Client network cross-connections | ✓ 500+ client business network | ✗ No business networking |
Trusted by London Hospitality Operators
From independent restaurants in Soho to pub groups in Bermondsey, hospitality businesses across London rely on LOYALS for specialist accounting and advisory.
Getting Started Takes Three Simple Steps
Free Consultation
Book a call at a time that suits you — including evenings and weekends. We will review your current setup, identify compliance gaps, and assess cost-saving opportunities specific to your hospitality business.
Tailored Compliance Plan
We create a bespoke plan covering VAT, payroll, tronc, MTD, and platform accounting. You will know exactly what needs to happen, when, and how much it costs — with no hidden fees or surprises.
Ongoing Advisory Partnership
LOYALS becomes an extension of your team. Monthly management accounts, WhatsApp support, and proactive advisory that helps your hospitality business not just survive but grow and thrive.
Frequently Asked Questions — Hospitality Accounting
Answers to the most common questions from London restaurant, pub, bar, and café owners about accounting, VAT, tronc, and compliance.
What VAT rate applies to restaurant food in the UK?
+Most food and drink served in a restaurant, pub, bar or café is standard-rated at 20% VAT. However, cold takeaway food — such as a sandwich taken off the premises — is generally zero-rated. Hot takeaway food remains standard-rated. The rules around eat-in versus takeaway, and hot versus cold food, create significant complexity. Getting this wrong can result in either overpaying VAT or facing HMRC penalties. LOYALS ensures your EPOS system is configured correctly and reviews your VAT split regularly to keep you fully compliant.
What is a tronc scheme and how does it save employer NIC?
+A tronc is a formal arrangement for pooling and distributing tips to staff, managed by an independent troncmaster rather than the business owner. When tips are distributed through a properly managed tronc, they are exempt from employer National Insurance Contributions — saving the business 15% on every pound distributed. For example, a restaurant distributing £5,000 per month in tips through a tronc would save £9,000 per year in employer NIC. LOYALS sets up compliant tronc schemes and manages the ongoing administration for London hospitality businesses.
Does HMRC specifically target restaurants and hospitality businesses?
+Yes. HMRC considers hospitality a high-risk sector due to cash transactions, complex tipping arrangements, and VAT compliance issues. Since 2024, delivery platforms like Deliveroo and Uber Eats share operator sales data directly with HMRC, enabling automatic cross-referencing of reported income against platform records. Any discrepancy can trigger a compliance check. Having a specialist hospitality accountant who understands these risks is the best protection for your business.
What expenses can a restaurant claim for tax purposes?
+Restaurants and hospitality businesses can claim a wide range of allowable expenses, including food and drink supplies, kitchen equipment and smallwares, staff uniforms and protective clothing, cleaning supplies, marketing and advertising, delivery platform commissions, premises rent and utilities, insurance, professional fees, staff training, waste disposal, and equipment maintenance. The key is ensuring every expense is properly documented and categorised. LOYALS reviews your expenses thoroughly to ensure nothing claimable is missed.
How does Making Tax Digital affect hospitality businesses?
+Making Tax Digital for Income Tax launches in April 2026 for sole traders and landlords with income over £50,000. This means quarterly digital submissions of income and expenses to HMRC, replacing the annual Self Assessment return. For hospitality sole traders above this threshold, this requires MTD-compatible accounting software and quarterly digital record-keeping. LOYALS handles the complete MTD transition for hospitality clients — from software selection to quarterly filing — ensuring you meet the new requirements without disruption to your business.
How do I account for Deliveroo and Uber Eats commission?
+Delivery platform commissions — typically 15% to 35% per order — must be reconciled against your gross sales. The commission is an allowable business expense. However, a common mistake is reporting net sales (after commission) as your turnover, when HMRC expects gross sales reported with commissions separately deducted. Since platforms now report your gross data directly to HMRC, any mismatch triggers automatic review. LOYALS reconciles all delivery platform statements monthly, ensuring your reported figures align perfectly with platform data.
Should my restaurant be a sole trader or limited company?
+The right structure depends on your turnover, profit levels, growth plans, and personal circumstances. Sole traders benefit from simpler administration and lower compliance costs, while limited companies offer tax advantages once profits exceed roughly £40,000 to £50,000 — through salary and dividend planning and the lower Corporation Tax rate. Limited companies also provide personal liability protection. LOYALS provides a free consultation to assess the optimal structure for your hospitality business and manages the full incorporation process if appropriate.
How much does a hospitality accountant cost in London?
+LOYALS offers three transparent packages. Premium Accounting starts at £150 per month, including all compliance, VAT returns, payroll, tronc management, and professional invoice chasing. Business Mentor is £250 per month with dedicated strategic support and business mentoring. The Business Growth Programme at £2,000 per month provides a complete business team including marketing, legal, sales coaching, and office support. All packages include WhatsApp support and weekend availability. For sole traders, Self Assessment services start from £300 one-off for turnover under £50,000, or £600 per year for those requiring MTD quarterly filing.
What is business rates relief and has it changed for hospitality?
+Business rates relief reduces the amount of property tax a business pays on its premises. For hospitality businesses, the relief dropped from 75% to 40% from April 2025, capped at £110,000 per business. This means many restaurants and pubs saw their rates bills increase significantly. A full business rates revaluation is due in April 2026, based on updated rateable values. LOYALS helps hospitality clients review their rateable values, challenge incorrect assessments, and apply for every available relief to minimise their rates liability.
When does a restaurant need to register for VAT?
+You must register for VAT when your taxable turnover exceeds £90,000 in any rolling 12-month period, or if you expect to exceed this threshold within the next 30 days. For many restaurants, reaching this threshold happens within the first year of trading. Voluntary registration below this threshold can also be beneficial if you make significant purchases that include VAT. LOYALS monitors your turnover, advises on the optimal registration timing, handles the full registration process, and manages your ongoing VAT returns to ensure full compliance.
Your Hospitality Business Deserves a Specialist Accountant
With MTD launching April 2026, business rates revaluation approaching, and HMRC actively cross-referencing delivery platform data, there has never been a more important time to get your accounting right. LOYALS is here to help — including evenings and weekends.
Serving restaurants, pubs, bars, cafés, takeaways, and hospitality businesses across all London boroughs — Westminster, Camden, Islington, Hackney, Tower Hamlets, City of London, Southwark, Lambeth, Wandsworth, Hammersmith, Kensington, Greenwich, Lewisham, Newham, and surrounding areas.