Hospitality Accountants for Restaurants, Bars & Hotels
Specialist US and UK tax and accounting for restaurants, bars, cafes and hotels. We handle tronc and tips, VAT and sales tax, hospitality payroll and cost control — and we support US-UK operators running venues on both sides of the Atlantic.
Hospitality tax advisory is specialist accounting for food, drink and accommodation businesses — restaurants, bars, hotels and cafes. It covers tips and tronc schemes, VAT and sales tax, payroll, capital allowances and margin control, plus cross-border structuring for operators trading in both the US and the UK.
How do you handle tips, tronc and hospitality payroll?
Tips and service charges are one of the most scrutinised areas in hospitality, and the rules differ sharply between the UK and the US. We build compliant, transparent pay arrangements that keep staff, HMRC and the IRS satisfied while protecting your business from penalties and back-tax exposure.
Compliant tronc schemes
We design and run tronc arrangements with an independent troncmaster so qualifying tips can be free of National Insurance, and we implement the Employment (Allocation of Tips) Act 2023 requirement to pass on 100% of tips.
IRS tip reporting
For US venues we manage employee tip reporting, Form 8027 for large food and beverage establishments, and the FICA tip credit on Form 8846 to recover employer payroll tax on reported tips.
Indirect tax on F&B
UK VAT registration above the £90,000 threshold, 20% standard-rate coding on food, drink and rooms, plus US state and local sales tax nexus reviews for multi-location operators.
Hospitality payroll
High-turnover, part-time and seasonal teams create payroll complexity. We run RTI PAYE and auto-enrolment pensions in the UK and federal and state payroll in the US.
Margins & reporting
Weekly gross-profit, wage-to-sales and food-cost reporting through cloud accounting so you can act on thin margins before they erode profit.
Fit-out tax relief
We claim capital allowances and the Annual Investment Allowance on kitchen equipment, refurbishments and fit-outs to reduce your corporation tax and improve cash flow.
What VAT and sales tax pitfalls hit restaurants and hotels?
Indirect tax is where hospitality margins quietly leak. In the UK, most sit-in food, drink and hotel accommodation is subject to VAT at the 20% standard rate, and you must register once taxable turnover crosses the £90,000 threshold. Mixed supplies, deposits, cancellation charges, discretionary service charges and package deals all need careful treatment, and a single mis-coded till button repeated thousands of times a month becomes a material error.
In the US there is no federal VAT — instead, sales tax is set state by state and often at city level, so a group with venues in several states faces multiple nexus, registration and filing obligations. We reconcile your point-of-sale data to your returns, review liability on every revenue stream and represent you in HMRC and state tax authority enquiries so an audit does not become an existential threat.
Key thresholds & rates
UK VAT registration threshold
£90,000 taxable turnover
UK standard VAT rate
20% on most food, drink & rooms
UK corporation tax main rate
25% on profits over £250,000
UK small profits rate
19% on profits under £50,000
US federal corporate tax
21% flat rate
UK Annual Investment Allowance
Up to £1,000,000 on fit-outs
Rates and thresholds are indicative and change with each Budget and state legislation — we confirm the current figures for your specific circumstances.
How do you support US-UK hospitality operators?
Ambitious hospitality brands increasingly operate on both sides of the Atlantic — a London restaurant group opening in New York, or a US hotel concept launching in the UK. That introduces two corporate tax systems, two payroll regimes and very different tip and indirect-tax rules, layered over currency movement and profit repatriation. We give you a single team that understands both, so decisions made in one country do not create nasty surprises in the other. We advise on the right entity structure, transfer pricing between related venues, VAT and sales tax registration, and how the US-UK tax treaty and foreign tax credits keep the same profit from being taxed twice. For owners and founders personally, we coordinate cross-border income, dividends and capital gains so your firm and your family are both looked after.
Who we work with
- Independent restaurants & bars
- Multi-site hospitality groups
- Boutique & branded hotels
- Cafes, coffee shops & QSR
- US-UK cross-border operators
One Team Powering Your Hospitality Tax Strategy
Built for the hospitality floor
We know hospitality runs on thin margins, unpredictable footfall and demanding compliance. Our team combines UK (HMRC) and US (IRS) expertise with real operational understanding of restaurants, bars and hotels — so our advice is practical, timely and built to protect your cash and your people.
›Get a ConsultationDual US & UK expertise
One team fluent in both HMRC and IRS rules — ideal for cross-border operators and expat owners.
Tips & tronc specialists
Compliant tronc design and IRS tip reporting that keeps staff paid fairly and you penalty-free.
Margin-focused reporting
Weekly cost and gross-profit visibility so you make decisions on numbers, not guesswork.
Audit-ready compliance
Clean VAT, sales tax and payroll records that stand up to HMRC and state tax authority scrutiny.
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Learn more →Ready to strengthen your hospitality finances?
Talk to a specialist about tronc, VAT, payroll and cross-border tax for your restaurant, bar or hotel. Your first conversation is a no-obligation consultation.
Tips, tronc and payroll handled properly
Tips and service charges are among the most closely watched areas in hospitality, and the rules diverge sharply between the UK and the US. We build compliant tronc arrangements, run accurate PAYE and US payroll, and keep clean records that stand up to HMRC and IRS scrutiny. That means your team is paid fairly and your business is protected from penalties and back-tax exposure.
- ›Compliant tronc schemes and fair tip allocation
- ›RTI PAYE, auto-enrolment and US payroll managed
- ›Audit-ready VAT, sales tax and payroll records
One team for US and UK hospitality operators
Ambitious restaurant, bar and hotel brands increasingly trade on both sides of the Atlantic, which brings two corporate tax systems, two payroll regimes and very different tip and indirect-tax rules. We give you a single team that understands both, so decisions made in one country never create surprises in the other. From entity structure to profit repatriation, we keep cross-border groups efficient and compliant.
- ›Entity structuring and transfer pricing between venues
- ›Treaty relief and foreign tax credits to avoid double tax
- ›Coordinated VAT and US sales tax registrations
Official resources & further reading
Authoritative guidance from the relevant tax authorities and regulators. Always confirm current thresholds and deadlines on the official source.
Questions & Answers
A tronc is a separate pay arrangement for distributing tips, run by an independent troncmaster. When set up correctly and kept at arm's length from the employer, qualifying tips paid through a tronc can be exempt from employer and employee National Insurance, though income tax still applies through PAYE. We design compliant tronc schemes for UK restaurants and bars.
The Employment (Allocation of Tips) Act 2023, in force from 1 October 2024, requires UK employers to pass on 100% of tips, gratuities and service charges to workers without deductions, and to keep a written tips policy and records. It affects restaurants, bars, hotels and cafes. We help operators build fair allocation rules and stay compliant.
In the US, all cash and card tips are taxable income and employees must report tips to their employer, who withholds federal income tax, Social Security and Medicare. Employers of large food and beverage venues file Form 8027, and many claim the FICA tip credit on Form 8846. We handle tip reporting and credit claims for US hospitality operators.
UK hospitality businesses must register for VAT once taxable turnover passes the £90,000 threshold and generally charge the 20% standard rate on food, drink and accommodation. Complexities include mixed-rate supplies, deposits, no-shows and service charges. Accurate coding protects your margins. We manage VAT registration, returns and reviews for bars, restaurants and hotel groups.
Tight margins in hospitality demand real-time visibility of food, labour and overhead costs. We implement cloud accounting, weekly gross-profit reporting, wage-to-revenue tracking and supplier analysis so you can act before problems compound. We also identify capital allowances on fit-outs and equipment to cut your tax bill and free up cash for reinvestment.
Operators running venues in both the US and UK can face overlapping corporate, payroll and indirect taxes, but the US-UK tax treaty and foreign tax credits usually prevent true double taxation when structured properly. We advise on entity structure, transfer pricing between locations and profit repatriation so cross-border hospitality groups stay efficient and compliant in both jurisdictions.
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