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Full English breakfast on a plate

Accountants for restaurants and cafés

Accounts, VAT and payroll for independent restaurants and cafés, with every dish costed and the week's sales and labour checked against plan.

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Where the money from an £18 main course goes

A dish priced at £18 on the menu, with £4.50 of ingredients, in a VAT-registered restaurant. Wages, rent and energy come out of the £10.50 before any profit is left.

Gross profit calculator for any dish
Diners talking across a busy restaurant table

Eat-in, takeaway and VAT

  • 20%Food and drink eaten on your premises, including tables and chairs in a shared food court
  • 20%Hot takeaway food: hot means above the temperature of the air around it when you hand it over
  • 0%Cold takeaway food, unless it is a type that is always standard-rated, such as crisps, sweets and bottled water

A hot and a cold item sold together for one price need a value put on each. We split your till's categories by VAT rate when we set it up, so the return is built from the same lines.

Eat-in and takeaway VAT calculator

What we do for restaurants and cafés

Book a free review

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

Questions from restaurant and café owners

Is a sandwich eaten at our tables zero-rated?

No. VAT Notice 709/1 says food and drink supplied for consumption on the premises is always standard-rated, and the premises include any area set aside for your customers to eat, such as your own tables and chairs. The same sandwich sold cold to take away is zero-rated. Where cold food is sold both ways at one price, the takings have to be apportioned.

Do we charge VAT on a service charge?

A compulsory service charge is part of the price of the meal, so it carries VAT at 20%. A service charge the customer is free to refuse is outside the scope of VAT. Either way it does not count towards the minimum wage.

When does a café have to register for VAT?

When taxable turnover over the last 12 months goes above £90,000, or you expect it to go above £90,000 in the next 30 days alone. You register within 30 days of the end of the month in which you passed the threshold.

Do staff meals count towards the minimum wage?

No. Accommodation is the only benefit that counts towards minimum wage pay. A deduction from pay for meals can take a worker below the minimum wage, so we check meal deductions on every payroll run.

Buzz Legal and Business Debt Recovery tools and guides

Buzz Legal and Business Debt Recovery are run by 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 restaurant or café

Send us your last accounts and a recent VAT return. We will show you the gross profit on your menu and what we would change.