In the dynamic world of hospitality, success extends beyond impeccable customer service – it hinges on mastering your finances. For cosy pubs, bustling restaurants, and luxurious hotels alike, financial literacy is not merely an added skill; it is the cornerstone of business growth. Without effective financial management, even the most
For those harbouring dreams of entrepreneurial independence, the allure of owning a pub is undeniable. The image of bustling crowds, lively music, and happy customers enjoying your carefully curated selection of brews paints a picture of idyllic self-employment. But amidst the pints and merriment lies a crucial question: is it
Introduction: As the employment landscape evolves, so do the regulations surrounding compensation, including holiday pay. One significant development in this realm is the reintroduction of the 12.07% holiday pay rule, and even better the simplification of this in tandem with rolled-up holiday pay. In the past, employees patiently accrued holiday
Running a successful hotel involves more than just managing the books; it requires a strategic approach to financial management that goes beyond the traditional accounting functions. In this article, we’ll explore how hoteliers can unlock profitability by adopting a comprehensive financial strategy that encompasses various key aspects of the business.
In the fast-paced and dynamic world of hospitality, efficient financial management is the backbone of success. As technology continues to evolve, businesses in the pub and restaurant industry are turning to innovative solutions to streamline their finances. One such powerful tool gaining widespread popularity is Xero, an advanced cloud-based accounting
In the dynamic realm of hospitality, understanding and leveraging Key Performance Indicators (KPIs) is crucial for steering your business towards success. Carroll Accountants offers a specialised KPI review service, tailored specifically for businesses in the hospitality sector, including pubs, bars, and restaurants. Let us explore how monitoring these vital metrics
Embarking on the entrepreneurial journey demands crucial decisions, and among them is selecting the right business structure. Two prevalent options are operating as a limited company or as a sole trader. Each structure comes with its own set of advantages and disadvantages. Let’s delve into the pros and cons of
Have you ever pondered why, despite your business showing a healthy profit on paper, you find yourself grappling with cash flow issues? It’s a common dilemma that many entrepreneurs and business owners face. You’re not alone if you’ve ever heard the saying, “Turnover is vanity, profit is sanity, but cash
Business planning, a term often associated with the early stages of a venture. Entrepreneurs meticulously craft their business plans to secure funding, impress potential investors, and map out their initial journey. But what happens next? Why is business planning more than just a one-time activity that collects dust in the
In Spring Budget 2023 the Chancellor announced a welcome change to the tax treatment of pensions – the scrapping of the Lifetime Allowance (LTA). The LTA stood at £1,073,100 when the process began on 5 April 2023 with the removal of the LTA charge. This means that withdrawals can now
The Nationwide Building Society has paid what is described as a ‘fairer share’ of £100 each to around three million of its customers. To qualify for this payment the customer must have held a qualifying current account plus either a savings account (including ISAs) with a balance of at least
HMRC has confirmed that requirements to report additional information will come into effect from the 2025-26 tax year or possibly a later period. HMRC has set out its intention to collect data relating to trade sectors; locations; occupations; hours worked; shareholdings and dividends paid; and self-employed trading dates. Draft legislation
In families where child benefit is claimed, it is important that the individual or couple receiving the child benefit keeps a close eye on their income level. If the higher earner has income of more than £50,000 some or all of the child benefit received will need to be repaid.
There is currently no legislation specifically targeted at social media influencers, however the fast-growing industry is very much on HMRC’s radar. Earlier this year HMRC sent nudge letters to thousands of influencers as well as gamers and online traders on sites such as Etsy and Facebook Marketplace to remind them
If your company undertakes research and development (R&D) you will usually benefit from generous tax relief. HMRC has published draft legislation for a new merged R&D scheme which would unify the existing R&D expenditure credit (RDEC) which currently applies to large companies and the small or medium entity (SME) relief
Claiming child benefit is, after the initial claim, an incredibly straightforward process (subject to the issues raised above regarding higher earners). However after sixteen years of automatic claiming it is easy to forget to update HMRC on whether you will continue to be entitled for a further two years. This
HMRC has given taxpayers an extra two years to plug any gaps in their NIC record from April 2006. The deadline for making voluntary contributions has been extended from 5 April 2023, as previously reported, until 5 April 2025. The deadline was first extended to 31 July 2023 and HMRC
Prime costs are an important key performance indicator for your restaurant, which is often overlooked. Prime costs are one of the most important and revealing numbers on any restaurant’s P&L. They can give you a much better understanding of your cost structure, profit potential and how well your restaurant is
In the dynamic and competitive hotel industry, measuring financial performance is essential for business success. Key Performance Indicators (KPIs) serve as valuable metrics to evaluate a hotel’s financial health and identify areas for improvement. This blog explores the key KPIs that hoteliers should monitor to gain insights into their financial
Running a successful restaurant involves more than just serving delicious food and providing excellent service. Behind the scenes, effective financial management plays a critical role in ensuring your restaurant’s success and long-term sustainability. One key aspect of this financial management is bookkeeping. In this blog, we will delve into the
As a hotelier, you know that running a successful hotel requires expertise in various areas, including accounting. Managing the finances of a hotel comes with its own set of challenges and complexities that demand specialised knowledge. At Carroll Accountants, we understand the unique accounting needs of hotels and can provide
Running a licensed trade business in the UK comes with unique challenges and intricacies. From managing complex financial regulations to maximising profitability, the expertise of licensed trade accountants can be invaluable. At Carroll Accountants, we specialise in providing comprehensive accounting services tailored specifically to the licensed trade industry. In this
As any entrepreneur in the food and beverage industry knows, optimising profitability is of paramount importance. One of the key aspects that demands attention is controlling labour costs. The remuneration offered to the staff, the associated benefits and taxes all contribute to the overheads and can erode profits if not
In the fiercely competitive landscape of the hospitality industry, the need for proficient accounting professionals cannot be overstated. When it comes to managing the financial intricacies of establishments such as pubs, bars, restaurants, and cafes, a team of trained and specialised accountants is crucial. This article explores the profound significance
This is a great tool to calculate, well what it says, the “break-even point”. This point is when the sales cover your total annual costs and no profit or loss is made. You may ask yourself, why do I want to just break-even? What’s the point of that? You are
Occasionally you may reward your employees with something special such as a holiday or a hamper. If the value exceeds the tax-free amount permitted under the rules for say long service awards, trivial benefits or staff suggestions it will be taxable. To avoid your employees getting a nasty shock in
Petrol and diesel pump prices are high but the tax-free mileage rates payable to employees who use their own vehicles for business have not been adjusted for over a decade. Many employees cannot afford to use their own car or motorbike for business journeys if they only get reimbursed at
The changes to the pension rules announced in the Spring Budget were designed to dissuade higher earners from retiring early to avoid pension charges on high contributions but the new rules could have the opposite effect. Individuals can now contribute up to £60,000 per year into a pension scheme and
The amount of your state pension is largely determined by how many years of NIC you have completed during your working life. You can check your NIC record in your online personal tax account (www.gov.uk/personal-tax-account). You normally need 35 full years of NIC to receive the maximum state pension and
For a medical service to be exempt from VAT it must generally be performed by a registered health professional or a staff member who is directly supervised by a registered health professional. Pharmacists can also deliver VAT exempt medical services but until recently that exemption did not apply to services
When purchasing commercial premises you need to know whether VAT will be added to the price as the stamp duty land tax charge (or similar taxes in Wales or Scotland) is calculated on the VAT inclusive value. Most older commercial buildings will be exempt from VAT but not if the
Student loan repayments (SLR) are normally deducted under PAYE from employment income so many people incorrectly assume that SLR are not due on other ‘unearned’ income such as rent or pensions. SLR will in fact be payable where the unearned income exceeds £2,000 per year and the taxpayer is required
The traditional way to hide sales from HMRC is to take payment in cash and not put it through the books. Nowadays technology helps dishonest traders to hide sales by using electronic sales suppression (ESS) software. The sale is not recorded on the normal till record and the payment may
When HMRC asks for more PAYE than you have deducted from your staff’s wages it is often the result of double-counting somewhere in the process. A persistent bug in the PAYE system is caused by the HMRC computer creating a duplicate employment record which it then uses to demand PAYE
There are many aspects to consider when running a business, and one of the major ones should be Health & Safety. It is important to keep your business, your people, customers and visitors safe and ensure your company is fully compliant. Every business, small or large, is required by law
The Office of the Pubs Code Adjudicator, the government body that is responsible for enforcing the statutory Pubs Code, recently issued guidance in relation to pub-owning business’ statutory obligations around accounting accurately. The particular aspect they seek to clarify revolves around Pubs Code, Schedule 2 forecast profit and loss statements
The Tourism, Hospitality and Leisure sector is believed to have the highest proportion of jobs paying the minimum wage of any sector, at around 30% of the total. However, Hospitality wages have risen by some 53% over the last ten years. Minimum wage catalysed by Brexit Low income workers actually
In this chapter we will explain the difference between Tips, Gratuities, and Service charges, and when a TRONC arrangement is necessary. To the public these are collectively known as Tips. However, you will need to know the difference between them, and how they are treated for tax purposes. Gratuity This
Electronic Point of Sale (EPoS) is the hardware and accompanying software that allows you to process orders and payments and provides real-time reporting and stock management information. It can be used to process room payments in hotels and also food and beverages or even things like Spa treatments, helping you
Don’t assume that just because you are a small to medium sized business, that you won’t be targeted by cyber criminals. The hotel, restaurant and hospitality and leisure sectors are possibly more vulnerable because of having small IT teams and a lack of knowledge around protection and best-practice. Cyber criminals
As a public house (pub) owner, grappling with the intricacies of rent reviews and understanding the pub code can be a daunting task. The legal process of rent reviews is commonly used in the pub industry to adjust the rent for commercial properties. However, it is important to have a
The Chancellor announced the relaxation of three different pension allowances to encourage older taxpayers to remain an active part of the workforce or to return to employment if they have retired early. The pensions annual allowance provides a cap on the total contributions a taxpayer and their employer can pay
The pensions lifetime allowance effectively caps the amount that can accumulate in a person’s pension fund and be extracted with favourable tax treatment. This covers all contributions paid in and any organic growth in the fund. Where the lifetime allowance (currently £1,073,100) is exceeded the pensioner must pay a lifetime
The Budget confirmed that the main rate of corporation tax will rise from 19% to 25% on 1 April 2023 but the small profits tax rate will stay at 19% where the company’s profits do not exceed £50,000. The Chancellor failed to highlight that the effective marginal rate of corporation
It is easy to forget the hidden tax rises which are created by frozen and cut allowances, so here is a quick reminder. The tax-free personal allowance will be frozen at £12,570 for six years from 2021-22 to 2027-28 and the related marriage allowance is fixed at £1,260 for the
The ‘super deduction’ capital allowances, which provide companies with a deduction of 130% of the cost of new plant and machinery, will end for expenditure incurred after 31 March 2023 as scheduled. The Chancellor has proposed a new system of full expensing of the cost of all plant and machinery,
Ambitious entrepreneurs who want to attract investors can use two different schemes to provide the investor with income tax relief on the value subscribed for shares and capital gains tax relief on the disposal of those shares. These schemes are: the enterprise investment scheme (EIS) and the seed enterprise investment
Last Autumn the Chancellor cut the enhanced deduction for expenditure by SME companies on R&D projects from an extra 130% to 86% and the payable tax credit from 14.5% of the loss surrendered to 10%. These new rates will come into effect for qualifying R&D expenditure incurred from 1 April
The Chancellor announced the extension of free childcare places to children under three years old in England to match the 15 or 30 hours of free childcare currently provided to three and four year olds in term time. The extra funding will only apply in England and will be rolled-out
Whether you run a bar or club, a hotel, café or restaurant, or offer bed & breakfast, or are involved in recreation or travel & tourism, you need adequate protection for yourself and any third parties. Each area faces unique risks and challenges, so talk to a broker who can
