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
In the hospitality sector, keeping up with the accounting demands of your business can be challenging. From bookkeeping and financial reporting to payroll processing and tax filing, it can be overwhelming to handle all these tasks on your own. That’s where outsourcing your business accounting needs can come in handy.
Small hospitality businesses face unique financial challenges, such as fluctuating revenue, seasonal demand, and rising operating costs. In this environment, financial planning is critical to achieving long-term success. By taking a proactive approach to financial management, small businesses can ensure they have the resources and resilience to weather any challenges
