Award-winning Midlands accountancy firm, Salhan Accountants, is warning the owners of restaurants and takeaways that official data suggests that they may be a target for the tax man.
Of those businesses named and shamed by HM Revenue & Customs over their tax affairs in the last year, 26 per cent were from this sector and these types of businesses account for 200 of 775 companies on HMRC’s current list of deliberate tax defaulters.
The tax team at Salhan Accountants said the complexity and levels of cash and tips handled by businesses in this industry made them more at risk of errors, which can subsequently lead to an investigation.
Dr Anjulika Salhan, Director at Salhan Accountants, said: “The data tends to suggest that those working in the food industry are investigated far more often than other sectors, particularly when it comes to staff pay and the implications of cash tips.
“Running a takeaway or restaurant can be a lot to juggle and it would be fair to say that in the last couple of years not only has it been one of the most regularly investigated sectors by the tax authority, but it has also seen some of the highest rates of insolvency.”
Salhan Accountants, which has offices in Birmingham and Droitwich, works with a large number of restaurants and takeaways and has specialist expertise in this area, particularly with those offering Chinese and Indian cuisine.
It said it has seen first-hand the difficulties and damage that a tax investigation can have on a business and knows that in many cases has it stepped in sooner it could have prevented an investigation in the first place.
“As we offer a tax investigation service to businesses, we are often called in after HMRC has contacted the business and in many cases, we can quickly identify how effective tax advice at an earlier stage could have helped the businesses to avoid the glare of HMRC,” added Anjulika.
She is calling on takeaway and restaurant owners to seek advice now if they are unsure of their current tax position or if they feel they may require help in future.
To find out more about Salhan Accountants services for the restaurant and fast food sector, please visit salhanaccountants.co.uk/specialist-sectors/restaurants-and-fast-food-outlets
