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Accountants for pubs and bars

Accounts and tax for pubs and bars, with gross profit on drink and food tracked apart and the week's takings checked against plan.

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Where the money from a £5.50 pint goes

A pint of 4% draught beer sold at £5.50 in a VAT-registered pub, with duty at the draught rate from 1 February 2026.

£0.92VAT at 20%, one sixth of the price, paid to HMRC on your VAT return
£0.44Alcohol duty: 0.568 litres × 4% × £19.45. The brewer pays it and it is included in the price of the cask.
£4.14The rest of the brewer's price, and your gross profit

Draught relief applies to beer under 8.5% in a container of 20 litres or more connected to a pump or gas-pressurised tap.

Dark wood pub interior with a customer at a table

The licences a pub trades on

  1. Premises licence

    From the licensing authority, usually the local council, to sell alcohol on a permanent basis.

  2. Designated premises supervisor

    Holds a personal licence and runs the premises day to day.

  3. Personal licence

    Every sale of alcohol is authorised by a personal licence holder. Staff serving at the bar do not each need a licence.

  4. Late night refreshment

    Covers hot food or drink sold between 11pm and 5am.

These rules apply in England and Wales under the Licensing Act 2003. Scotland has its own system, and so does Northern Ireland.

What we do for pubs and bars

Accounts, tax, bookkeeping and VAT returns start from £149 + VAT a month, set by your turnover. Business Pulse starts from £375 + VAT a month.

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Questions from pub and bar owners

Do we pay alcohol duty on draught beer?

The brewer, the excise warehousekeeper or the importer pays it, and it sits inside the price you pay for the cask. Since 1 February 2026 beer from 3.5% to 8.4% carries £19.45 per litre of pure alcohol on draught and £22.58 in other containers. Draught relief applies to products under 8.5% in a container of 20 litres or more connected to a dispense system.

Can the licensee run the tronc?

If the employer, or a director of the company, acts as troncmaster, HMRC treats the payments as made by the employer. They go through the company payroll and National Insurance is due on them. A tronc run by an independent troncmaster, through a PAYE scheme in the troncmaster's name, pays no National Insurance as long as the employer does not decide who gets what.

Which flat rate percentage applies to a pub?

HMRC's flat rate percentage for pubs is 6.5% of VAT-inclusive turnover. Before joining, check the limited cost trader test and the scheme's turnover limits, and compare it with the VAT you reclaim on costs under normal accounting.

Do we need a licence for a one-off event?

A temporary event notice covers an event for fewer than 500 people lasting no more than 168 hours. You give it to the licensing authority, which is usually the local council.

Buzz Legal guides

Buzz Legal is the business legal service of Buzz Legal Ltd (company 17078192). Court work is handled by AD Solicitors, authorised and regulated by the SRA (no. 8011228).

Book a free review for your pub

Send us your last accounts, a VAT return and a payroll run with tips. We will show you your gross profit on drink and food and what we would change.