Are you an entrepreneur and involved in restaurant business here in the UK? We understand that you have calibrated in your business industry. However, are you aware about your catering and hospitality business accountancy needs? In this article, we have a checklist for you that might assist for your business accountancy, taxation, and support requirements.
Checklist for Restaurant Business Accountancy Needs:
- Business plan including forecast: Are you about to start your new business? Then you should set up your business plan before starting the business. You may also need business plan for your existing business. You should assess your business whether this is suitable to you, you have feasibility to start with and finally decide whether this is acceptable by you. You should also forecast in which period you will go for breakeven point and then earning your desire profit.
- Register your business: Once you have decided for your restaurant business, you need to register the business either as a sole trader or under a limited company. This is a common question that which one is the best and you should seek an advisor for this suited to you. You should register for PAYE scheme if you have staff and for VAT where applicable. You also need to be aware about other registration relevant to your industry including licence from the local authority, health and safety and so on.
- Book-keeping: You may be aware that your business accounts preparation depends on accurate and timely bookkeeping, and you should do so on regular basis. You may have inhouse bookkeeper, but this might be costly to you and do not add value to your business as not core business activities. We recommend using the outsourcing for your business bookkeeping if suited to you. Don’t forget digital aspect for your bookkeeping as we are now emerging technology for accountancy matters.
- Payroll and workplace pension: You may need to run payroll scheme if you have people working for your business as employees. Your business may be also subject to workplace pension if the employees have income in certain level. The payroll period could be on weekly, monthly, four weekly and other basis. Under the payroll, you will deduct tax and NIC from employees’ salary and as an employer, you will pay NIC as well.
- Value Added Tax (VAT): You must be VAT registered business if the turnover is the above of the VAT threshold. From April 2022, all VAT registered businesses are subject to MTD (Making Tax Digital) compliance and therefore, you should use MTD compliance software (for example, Xero).
- Company accounts and tax: You need to prepare the accounts and submit the self-assessment tax return to HMRC as self-employed if you have registered your business as a sole trader. As a limited company, you need to prepare limited company accounts under the Companies House Act and submit to them. You also need to prepare corporation tax computation and submit the CT600 to HMRC with the accounts.
- Others: The above lists are not complete and hence you should consider that as follows:
- Don’t foregate to have your business bank account to run the business
- Consider preparing management accounts to see how your business going rather than waiting for the end of the year
- Choose the suitable accountants where you can work smoothly in a partnership
We are aware that you have a range of challenges in your industry including customer trend, emerging technology, competitiveness, and an economic vibrant niche. Your industry is mostly affected because of the recent pandemic outbreak and now it could be the good time to resume your business after a long of stressful and terrible period.
The above information is just as a general information that might help you. However, we highly recommend having expert advice suited for your circumstances. The Stan Lee and its author are not liable if you rely on this and have any consequences.