How should we handle tips and service charges under TRONC rules?
To ensure tips are free from National Insurance contributions, a formally structured TRONC system managed by an independent Troncmaster is required. We assist hospitality venues in implementing tax-compliant tip allocation schemes.
What financial metrics should we track to maintain profitability in hospitality?
Tracking Cost of Goods Sold, prime costs, and gross profit margins on a weekly or monthly basis is vital. We produce clear management accounts so you can spot margin slippage immediately and make informed decisions.
How does VAT apply to different types of food and drink sales in a bar or restaurant?
VAT rules vary significantly across eat-in dining, takeaway food, cold items, and alcoholic drinks. Durrani & Co aligns your point-of-sale (EPOS) system with cloud accounting software to ensure every transaction is automatically categorised with the correct VAT treatment.
VAT standard rates and partial exemption and what that means if you’re in hospitality.
Most hospitality operators assume food sales are tax-free, but HMRC’s catering rules create a complex liability landscape. Clarifying the standard versus zero-rated divide exposes how to protect margins through precise input tax recovery.
What key financial metrics should we track to maintain profitability?
In hospitality, tracking Cost of Goods Sold (COGS), prime costs (combined labor and food/drink expenses), and gross profit margins on a weekly or monthly basis is vital. We produce clear management accounts so you can spot margin slippage immediately.
How do we handle VAT on hot food, takeaway sales, and alcoholic beverages?
VAT rules vary significantly across eat-in dining, takeaway food, cold items, and alcoholic drinks. We align your point-of-sale (EPOS) system directly with cloud accounting software to ensure every transaction is automatically categorized with the correct VAT treatment.
How should our bar or restaurant handle tips and service charges under TRONC rules?
To ensure tips distributed to staff are free from National Insurance contributions (NICs), a formally structured TRONC system managed by an independent Troncmaster is required. We assist hospitality venues in implementing tax-compliant tip allocation schemes.
Bars & Restaurants
Our dedicated hospitality accounting team works alongside independent restaurant owners, multi-site bar operators, franchisees, and boutique hospitality venues across the UK.
