Simplify accounting complexities while creating exceptional hospitality experiences with ease.
Looking for an accountant for hotels and restaurants who already understands tronc, the hot-food VAT line and TOMS before you've finished explaining? That's us. Zmartly is ACCA-qualified, gives you a named accountant on fixed monthly pricing, and replies within 72 hours, so the gnarly hospitality questions a generalist gets wrong get answered properly the first time.
Since 1 October 2024 the Employment (Allocation of Tips) Act means tips you control must reach staff in full, normally by the end of the following month. Run them through a properly independent tronc and the payments are usually free of National Insurance for both you and your team, but only if the troncmaster acts without your direction. We set the tronc up so it survives an HMRC look, not just a payslip line.
Eat-in is always standard-rated; hot takeaway is standard-rated if it meets one of HMRC's five tests; cold takeaway is usually zero-rated. Get the menu mix wrong and you either hand HMRC money you didn't owe or build a liability that surfaces at inspection. We map your till categories to the actual VAT liability so every transaction is rated correctly.
A restaurant or hotel refurb is rarely one number. Integral features, wiring, heating, air-con, lighting, qualify for plant and machinery allowances (AIA up to £1,000,000), kitchen kit can attract full expensing, and the bare structure may qualify for the Structures and Buildings Allowance. We dissect the spend so nothing claimable sits in a non-qualifying bucket.
Bundle a room with bought-in transport, a spa day or a tour and you can be dragged into the Tour Operators' Margin Scheme, VAT on your margin only, with no input recovery on the bought-in bits. Most hoteliers don't realise they've triggered it. We check whether TOMS applies to your packages and account for it the cheaper, compliant way.
We build and document an independent tronc so service charges and card tips flow to staff NIC-free and in line with the October 2024 fair-distribution rules. PAYE still applies to tronc income, so we handle the payroll mechanics, the troncmaster paperwork and the written tipping policy customers and inspectors can ask to see.
Eat-in versus hot takeaway versus cold takeaway, soft drinks, confectionery, deposits and no-shows, and mixed deals like a hot main with a cold side, we set your EPOS categories to the right liability. We also watch the £90,000 registration and £88,000 deregistration thresholds so seasonal spikes don't catch you out.
New kitchen, new bar, new bedrooms, we run a capital allowances review splitting spend between integral features and general plant (Annual Investment Allowance up to £1,000,000), full expensing on qualifying new plant, and Structures and Buildings Allowance on the shell, so every claimable pound is claimed.
If you resell bought-in transport, excursions or third-party accommodation alongside your own rooms, we assess TOMS exposure, choose the right tax-point method and keep your margin calculation defensible, so a spa-break or coach-and-stay package doesn't quietly create a VAT problem.
Hospitality payroll is high-churn: starters, leavers, holiday pay on variable hours, age-banded minimum wage and National Insurance on real wages plus tronc. We run RTI payroll, auto-enrolment and the tronc alongside it, all on Xero, QuickBooks, FreeAgent or Sage, so staff are paid right and HMRC filings are on time.
We prepare your accounts and corporation tax return, applying the 19% small-profits rate, 25% main rate or marginal relief depending on profit, and give you the gross-margin, wage-percentage and covers numbers that actually tell you whether the site is working, not just a statutory filing you read once a year.
Understanding your business needs.
Crafting your custom accounting strategy.
Quick and easy integration.
Consistent monitoring and reporting.
Plain-English explainers, kept current with the latest HMRC rules.
Broadly yes. Hot food provided to the customer is standard-rated for VAT if it meets one of HMRC's five tests (such as being kept hot or heated to order), so a hot takeaway pizza is standard-rated. Cold takeaway food that isn't on the always-standard-rated list (like a plain sandwich) is usually zero-rated. Anything eaten on your premises is always standard-rated. We map your menu so each till button charges the correct rate.
They can, if they go through a genuinely independent tronc. Tips distributed by a troncmaster who acts without the employer's direction or indirect control are normally exempt from National Insurance for you and your staff. PAYE income tax still applies. Since 1 October 2024 you must also pass on tips you control in full and have a written policy. We set the tronc up so it both saves the NIC and stands up to HMRC scrutiny.
Usually far more than people expect. Integral features such as electrical, heating, ventilation and lighting systems qualify for plant and machinery allowances, with the Annual Investment Allowance covering up to £1,000,000 of qualifying spend and full expensing available on qualifying new main-rate plant. The building shell may qualify for the Structures and Buildings Allowance. We run a capital allowances review of the contractor's invoices so nothing claimable is missed.
It might trigger the Tour Operators' Margin Scheme (TOMS). If you buy in travel, excursions or third-party accommodation and resell them in your own name alongside your rooms, you may have to account for VAT on your margin only, with no input VAT recovery on the bought-in elements. Many hoteliers fall into TOMS without realising. We check whether it applies and account for it correctly.
You must register once your VAT-taxable turnover exceeds £90,000 in a rolling 12 months, or if you expect to breach it in the next 30 days. You can deregister if turnover falls below £88,000. Seasonal trade can push you over temporarily, so we monitor your rolling figure rather than waiting for the year-end.
If you're a sole trader or landlord, MTD for Income Tax phases in by income: from April 2026 if your qualifying income is over £50,000, April 2027 over £30,000, and April 2028 over £20,000. It means digital records and quarterly updates. If you trade through a limited company this particular regime doesn't apply, though your VAT is already under MTD. We get your bookkeeping software ready ahead of your start date.
Fixed monthly pricing of £99, £199 or £499 depending on the support you need, billed rolling monthly with no long lock-in. You get a named, ACCA-qualified accountant, replies within 72 hours, and a 30-day money-back guarantee. We work in Xero, QuickBooks, FreeAgent and Sage.
Thirty minutes with an ACCA-qualified accountant. Most owners uncover £1,000-£3,000 in annual savings on the first call. If we are not the right fit, you walk away with a free tax review on the house.
