QUICK VAT FACTSMost takeaway food is zero-rated for VAT. But make sure you understand the rules, because there are exceptions. For example, you need to pay VAT on all of the following:

●● Food or drink sold in other buildings, if you have a contract or agreement to do so

●● Packed lunches provided for an event or a function

●● Ready-to-eat hot food or meals delivered to a customer

●● Cooked and prepared food for customers at home, such as for a dinner party

●● Food that your customers can heat in a microwave on your premises

●● Cold takeaway food as part of a mixed hot / cold package, where the cold items can’t be bought separately

KEEP THOSE Z-SLIPS!

Once you’ve cashed up, keep hold of those all-important Z-slips. Without them you will lack important evidence that all your sales have been declared, and if the VAT man decides to investigate his review will be all the more costly and time consuming.

Our VAT consultants have a lot of experience of advising cafés and sandwich shops on VAT issues and can help you solve the regular problem areas. Why not get in touch and book an appointment with one now?

If you’d like to learn more about VAT and protecting your business from tax investigations, talk to one of our VAT consultants today. They’ll help you with any issues you may have, and will help you solve the regular problem areas. You can call them on 0800 6520 025 today.

TOP VATTIPS FOR RESTAURANTS, CAFÉS & SANDWICH SHOPSA THP guide to getting your VAT right and avoiding unexpected bills VAT. It’s the bane of everyone who owns a catering business. With thousands of transactions to account for every quarter, it’s hardly surprising that restaurants, cafés and sandwich shops make mistakes.

That’s when things can get expensive. If you apply the wrong level of VAT or can’t provide evidence of each sale, sooner or later the taxman will find out – and that can land you with an eye-watering bill.

With tax investigations on the rise, we thought we’d share our top tips for getting your VAT right first time. They’re simple, but they could save you a small fortune when HMRC comes knocking.

DON’T MUDDLE EAT-IN SALES

WITH TAKEAWAY PRICESIf your customers eat in, you have to charge them VAT. If they take the food away, you don’t. Make sure your tills are able to cope with both type of sale and that staff are trained to ask customers whether they intend to eat in or take food out.

DON’T USE FIXED HISTORICAL

PERCENTAGESWe’ve found that many businesses in the catering sector use fixed historical percentages when calculating VAT. Don’t! In many cases these are no longer relevant or accurate. If the real percentage zero-rated takeaway sales is lower than you think, you could be landed with a large bill to make up the VAT shortfall.

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The information in this publication is for general guidance only. We recommend you seek advice pertaining to your own circumstances before taking any action based upon it. Wanstead 34-40 High Street, Wanstead, London E11 2RJ T 020 8989 5147 E wanstead@thp.co.uk Cheam Turnbull House, 226 Mulgrave Road, Cheam, Surrey SM2 6JT T 020 8652 1070 E cheam@thp.co.uk Chelmsford Shalford Court, 95 Springfield Road, Chelmsford, Essex CM2 6JL T 01245 251731 E chelmsford@thp.co.uk Saffron Walden 24 High Street, Saffron Walden, Essex CB10 1AX T 01799 527478 E saffron@thp.co.uk City Clements House, 27-28 Clements Lane, London EC4N 7AE T 020 3207 9078 E city@thp.co.uk THP is the trading name of THP Limited registered in England & Wales, No. 04664338, VAT number 249110185. Our registered office is 34-40 High Street, Wanstead, London, E11 2RJ. Our audit registration details are at www.auditregister.org reference number C001012915.