Accountants for Restaurants & Hospitality in Glasgow
QA FinTax are specialist accountants for Glasgow’s hospitality sector — restaurants, cafés, pubs and takeaways. We handle the issues unique to food and drink: the VAT rules on hot and cold food, tronc and tips, payroll for variable and tipped staff, and keeping tight control of cash.
Hospitality runs on thin margins and long hours, and the tax rules do it no favours — VAT on food is genuinely complicated, tips have their own treatment, and payroll changes shift by shift. Glasgow has one of Scotland’s liveliest food and drink scenes, and as specialist hospitality accountants we help restaurants, cafes, pubs and takeaways keep more of what they make and stay on the right side of HMRC.
The Tax Challenges Hospitality Businesses Face
- VAT on food — hot, cold, eat-in and takeaway are all treated differently
- Tronc and tips, and the new legal duty to pass 100% of tips to staff
- Payroll for variable-hours, part-time and tipped staff
- Tight cash handling and reconciliation
- Stock, wastage and gross-margin control
How Is VAT Charged on Food and Drink?
This is where hospitality businesses most often get it wrong. The short version: anything eaten in, and any hot takeaway, is standard-rated at 20%. Cold takeaway food is usually zero-rated. Getting the split right across your menu matters, because HMRC can assess up to four years of underpaid VAT.
| Supply | VAT |
|---|---|
| Eat-in — any food or drink | 20% (standard) |
| Hot takeaway food | 20% (standard) |
| Cold takeaway food (e.g. a sandwich to go) | 0% (zero-rated) |
| Always-standard items (crisps, confectionery, soft & alcoholic drinks) | 20% (standard) |
| Mandatory service charge | 20% (standard) |
| A tip the customer freely chooses to add | No VAT |
Tips, Tronc and the New Rules
Tips have their own treatment. A mandatory service charge is part of your sales and is standard-rated for VAT; a tip a customer freely gives is outside VAT. A properly run tronc (a scheme for sharing tips, run by an independent troncmaster) can also save National Insurance for you and your staff. And since the Tipping Act, employers must pass on 100% of tips to workers — we make sure your setup is both compliant and efficient.
How We Help Glasgow Hospitality Businesses
- Getting the VAT liability right across your whole menu
- Setting up a compliant, NIC-efficient tronc for tips
- Payroll for variable-hours and tipped staff, run on time
- Cloud bookkeeping linked to your till and card provider
- Gross-margin and wastage reporting through management accounts
- Year-end accounts and corporation tax
The Services Hospitality & Food Businesses Need
Hospitality & Food in Glasgow — Frequently Asked Questions
Official sources
Rates and thresholds are stated for the 2026/27 UK tax year and are for general guidance only. They are not a substitute for advice on your own circumstances.
Accountants who understand hospitality & food
Book a free 15-minute review with a Glasgow adviser who knows your sector.