Specialist hospitality accountants in Winchester
Specialist hospitality accountants serving restaurants, bars, cafés, hotels and everything in between across Winchester and Hampshire. We understand the pressures of the industry, from tight margins and seasonal cash flow to tips legislation and complex VAT rules.
Complex food & drink VAT rules handled correctly from day one
Full compliance with the 2024 tips & tronc legislation
Variable, part-time and seasonal workforces managed with ease
Cash flow forecasting to get you through slow seasons confidently
Do I pay National Insurance on tips?
Tips and discretionary service charges paid through a properly constituted tronc attract PAYE but no employer or employee National Insurance, provided the employer plays no part in deciding who gets what. Mandatory service charges always attract National Insurance, however distributed. An employer-devised points system, or a director acting as troncmaster, forfeits the relief.
Correct for the 2026/27 tax year · last reviewed August 2026 · Chris Sullivan ACA
What every hospitality business in Winchester needs to get right
The hospitality sector comes with its own set of financial complexities. Here's what we keep a close eye on for every client in the industry.
Temporary 5% VAT rate on children's meals, effective 25 June to 1 September 2026
HMRC has introduced a temporary reduced VAT rate of 5% (down from 20%) on children's meals served and consumed on-premises at restaurants, cafés and similar hospitality venues. To qualify, meals must be marketed and priced specifically as children's meals. Takeaway and meals accompanied by alcohol are excluded. Admission to qualifying family attractions, including soft play centres, theme parks, zoos and museums, is also reduced to 5% for all customers during the period. The reduced rate ends on 1 September 2026, when standard rates return — both changeovers need your till and Xero VAT codes set correctly, and any sales coded wrong during the period can still be corrected on your return. Get in touch and we'll handle it.
VAT on Food & Drink
Hospitality VAT is notoriously complex. Hot vs cold food, eat-in vs takeaway, alcohol vs soft drinks: each attracts different VAT rates. From 25 June 2026, a temporary 5% rate applies to on-premises children's meals marketed specifically as such. Getting this right is critical, as it's one of HMRC's most common hospitality audit areas.
High PriorityTips & Tronc (2024 Legislation)
Since October 2024, employers are legally required to pass 100% of tips to workers. We'll set up or review your tronc scheme to ensure full compliance.
Legal RequirementPayroll Complexity
Hospitality often means large numbers of part-time, zero-hours and seasonal staff. We manage your payroll accurately, including minimum wage compliance, holiday pay calculations and pension auto-enrolment.
OngoingGross Profit & Margin Tracking
Knowing your food and drink margins in real time is essential. We produce monthly management accounts so you always know where your money is going, and where you can improve profitability.
MonthlySeasonal Cash Flow
Summer peaks and winter lulls can put serious strain on cash flow. We build rolling forecasts so you can plan ahead, manage stock, staffing levels and tax payments without nasty surprises.
PlanningBusiness Rates & Reliefs
Are you claiming all the rates reliefs available to you? We'll make sure you're not overpaying on business rates and that any eligible relief schemes, including hospitality-specific support, are fully utilised.
SavingsMaking Tax Digital (MTD)
MTD for Income Tax is being extended to more businesses. We handle all quarterly digital submissions through Xero, keeping you compliant without adding to your workload.
ComplianceStock & Cost of Goods
Food waste, supplier price increases and portion control all affect your bottom line. We work with your Xero data to give you a clear picture of cost of goods sold and where margins can be protected.
ProfitabilityYear-End & Corporation Tax
We prepare your statutory accounts and corporation tax return, making sure all allowable deductions specific to hospitality (equipment, fit-out costs, lease costs) are correctly claimed.
AnnualEverything included, built for your industry
All packages include a Xero subscription (our recommended software) and are built around the specific needs of hospitality businesses, not a generic off-the-shelf service.
Hospitality pricing reflects the additional compliance complexity of the sector. VAT rules, tronc, payroll and cash flow planning are all included as standard. View our standard packages →
Every hospitality client gets a Xero chart of accounts set up specifically for the industry, with separate tracking for food revenue, drink revenue, service charges and labour costs so your numbers always make sense.
- Xero set-up with hospitality chart of accounts (or configuration of your preferred software)
- Statutory accounts & corporation tax
- Monthly bank reconciliation (up to 50 transactions)
- Email support
- Basic VAT review on food & drink sales
- Tips compliance health check
- Everything in Essentials, plus advanced Xero
- Monthly bank reconciliation (up to 150 transactions)
- Quarterly VAT returns
- Annual accounts & corporation tax
- Payroll for up to 5 employees
- Email support
- Full VAT review — food, drink & mixed supplies
- Tronc scheme setup & compliance
- Gross profit & margin reporting
- Seasonal cash flow planning
- Everything in Growth
- Monthly management accounts
- Quarterly strategy & tax review meetings
- Unlimited phone support
- Full cost of goods & stock analysis
- Labour cost vs revenue reporting
- Business rates relief review
- Rolling 12-month cash flow forecast
- Payroll for variable/seasonal workforce
All prices exclude VAT.
Why choose Lumi as your hospitality accountant
We're not a generalist firm that happens to take on restaurant clients. We understand the industry's specific pressures and work proactively to keep your finances sharp.
Plain English, no jargon
You run a busy operation. The last thing you need is an accountant who blinds you with technical language. We give it to you straight: numbers that make sense, advice you can act on.
Actually responsive
When you need us, we're there. We know the hospitality industry doesn't run 9 to 5, so we make sure our response times reflect the pace of your business.
Proactive, not reactive
We don't wait until January to think about your tax bill. We flag issues early, identify savings opportunities and help you make decisions based on real, up-to-date numbers.
One point of contact
You deal directly with a qualified Chartered Accountant who takes the time to understand your business, your margins and your seasonality, building that knowledge from day one and keeping it current.
What hospitality owners ask us most
Ready to get your finances working for you?
Book a free 30-minute call. We'll talk through your business, where you're at, and how we can take the financial pressure off your plate.
Hospitality accountancy guides
Plain-English reads on the issues that catch hospitality businesses out.
