Saving money and cutting costs are always at the back of a restaurateur’s mind. However, between managing staff, keeping customers happy and maintaining food quality, the financial aspects of running a restaurant can often take a back seat. Understanding some of the key tax deductions on offer for businesses can significantly boost your bottom line and reduce the financial strain on your restaurant operations.
 

The UK’s hospitality sector has been grappling with significant labour shortages, a challenge exacerbated by recent changes to UK immigration policy. These shortages have led to increased pressure on existing staff, longer working hours and a decline in service quality. Businesses are struggling to recruit and retain staff, leading to higher turnover rates and increased operational costs. Addressing these challenges requires a multi-faceted approach, including improving working conditions, offering competitive wages and exploring new recruitment strategies both domestically and internationally.

A recent judgement concerning whether tronc awards are 'earnings' for the purposes of holiday pay and other work entitlements has major impolications for those hospitality businesses who not currently pay tronc to team members when away on annual leave. 

Rishi Sunak has announced today that there will be more government support provided for businesses most impacted by the rising Coronavirus cases in the UK.
 

Covid 19 has wreaked havoc for all business sectors but has had a very significant impact on the hospitality and leisure sector, which subsequently then expands into other businesses in terms of supply chains and consumer demand. 

HMRC has confirmed a new policy that VAT will remain due on a deposit, even if the customer does not use the goods or services for which it was paid – this comes into effect from March 1 2019. This change will affect the hospitality industry significantly (but it will also apply to other businesses), which will soon be unable to recover VAT charged on cancelations or ‘no show’ charges.
 

HMRC has confirmed a new policy that VAT will remain due on a deposit, even if the customer does not use the goods or services for which it was paid – this comes into effect from March 1 2019. This change will affect the hospitality industry significantly (but it will also apply to other businesses), which will soon be unable to recover VAT charged on cancelations or ‘no show’ charges.
 

HMRC has confirmed a new policy that VAT will remain due on a deposit, even if the customer does not use the goods or services for which it was paid – this comes into effect from March 1 2019. This change will affect the hospitality industry significantly (but it will also apply to other businesses), which will soon be unable to recover VAT charged on cancelations or ‘no show’ charges.

Coventry’s restaurants saw the fastest growth in turnover of the UK’s major cities over the long term, increasing at 96% per annum over two years to £187m in 2015 from £64m in 2013.