Pub Accounts / bookkeeping

sheelagh

Anyone doing bookkeeping for a pub?
I have a new client who runs a pub - sole trader, small pub, some bar food.
Is there anything special I could consider when compiling the books?
I've heard about splitting wet sales / dry sales and the client has told me about a few items which the previous accountant/bookkeeper said were allowable, but some sound a little tenuous (nothing unusual there).

Any tips much appreciated.

Thank you

Bluewednesday

Our pub client absolutely insists that they can have clothing as an allowable expense - I had to print off a page from HMRC before they would believe me - the trouble is they are in a perfect place to listen to 'a man in the pub said....'!!

monkeypuzzle47

i know that clothing is disallowable, but if pub staff are permitted to wear uniform would this be an allowable expensive. I would of thought so.
can anyone confirm this.

DaveP

Uniform provided to the staff is allowable, such as polo shirts with the pub name on.

Landlords general clothing that he wears whilst working is not.

Bluewednesday

I agree - we've always allowed the uniform but its the landlord and landlady's clothing that was in question. They don't wear a uniform.

PAMDILL

I did bookkeeping for a pub for several years, they split wet/dry sales and a seperate account for game machine takings.They had newspapers as allowable expenses - provided for customers,

T.C.

Yes, I did a pub a few years ago and I allowed newspapers, but not clothing (other than protective clothing)!
Stick to your opinions on this. If they want to query it further, suggest that they, or indeed you, write to HMRC to get clarification.

Monsoon

If the client gets fussy about some disallowable expenses, just code them clearly and separately and at the year end they will be disallowed in the tax comp. There's nothing wrong with showing them in the accounts as long as the end result is they are not counted as an expense against tax. If you aren't doing the year end, make sure the disallowable expenses are obvious to the accountant.

Bluewednesday

that is what we did, I was making reference more to the fact that they are in the right place to hear that all important (but mostly incorrect) accounting advice from 'the mate down the pub'!

It just makes me laugh when they believe that the proverbial mate knows more accountancy than the qualified accountant!!

sheelagh

pub accounts

Thank you all for your responses. I was beginning to doubt myself when the client talked about this and that being allowable. You have now restored my confidence and I will stick to my guns!
As you say, this is the perfect environment to hear the advice of the man in the pub.

Monsoon

The man down the pub who dispenses dodgy accounting and tax advice I am sure is the bane of most accountants lives!!!! :001_tt2:
And yes, the publican is probably most vulnerable to this dangerous creature

farmergiles

I would suggest being careful with the food. A lot of landlords try to push through their own food bills along with the pub bills. You do have to rely a lot on their honesty but a good look at receipts ought to help you weed out the personal purchases. If not, look at an "add-back" at the year end of up to 20% for personal use.(this was advised in the last practice I worked in!)