Hospitality businesses have their own challenges: busy and quiet seasons, lots of staff, tips and service charges, and tight margins. Meridian Accountants works with restaurants, cafés and hotels to keep the numbers under control and stay on the right side of the rules.
We're ICAEW regulated Chartered Accountants based in Southampton, working with hospitality businesses across Southampton, Romsey, Winchester, the New Forest, Totton and surrounding areas.
What we help with
- Payroll for changing teams: weekly or monthly payroll, casual and seasonal staff, holiday pay and auto-enrolment
- Tips and service charges: a fair, compliant tipping policy, records that meet the rules, and payment on time
- Tronc schemes: setting up and running an independent tronc so tips can be paid without National Insurance
- VAT: the right treatment for food, drink, accommodation and service charges
- Year-end accounts and tax, for limited companies and sole traders
- Management accounts: food and drink margins, staff costs and cash flow, so you can plan for the quieter months
Tips and troncs
Since October 2024, employers must pass on all tips to workers in full and share them fairly. More rules, including consulting staff on your tipping policy and reviewing it every 3 years, are expected by the end of 2026.
How tips are paid out also affects tax. An independent tronc can save National Insurance for both the business and staff, but only if it's set up and run properly. Our guide tips, troncs and the new tipping rules explains the options with worked examples.
Frequently asked questions
Can you set up a tronc scheme for my restaurant?
Yes. We can help you appoint a troncmaster, register the tronc PAYE scheme with HMRC and run it alongside your main payroll. We can also act as an independent troncmaster.
Do I need a written tipping policy?
Yes, if your business receives tips, gratuities or service charges more than occasionally. It must be available to all staff, and once the new rules start you'll need to consult staff on it and review it at least every 3 years.
Is a service charge subject to VAT?
A genuinely optional service charge is outside VAT. A compulsory service charge is part of the price and is standard-rated. Either way, it must be passed on to workers under the tipping law.
Can you help with seasonal staff?
Yes. We run payroll for casual and seasonal workers, including starters and leavers, holiday pay and pension auto-enrolment checks.
Get in touch
Run a restaurant, café or hotel? Meridian Accountants, Chartered Accountants based in Southampton, works with hospitality businesses across Southampton, Romsey, Winchester, the New Forest, Totton and surrounding areas. Get in touch to book a free call.