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bigduckontax
bigduckontax, Accountant
Category: Tax
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A client runs a pub that sells food. the food part of the

Customer Question

A client runs a pub that sells food.
the food part of the restaurant is run by another party.
Although when asking for payment it all goes through one till for convenience and show.
The client doesn't want to be responsible for the restaurant side of the business, how does he separate them without separating the initial takings.
maybe he could manually seperate it on a weekly basis and transfer over the monies to the other party for the food side.
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. My immediate reaction is to install a separate till. This will please any possible HMRC inspection! Otherwise the manual separation you suggest on a daily, weekly, or monthly basis would suffice. Another thought crosses my mind: most modern tills have the capacity to classify sales which would go a very long way to resolving the problem. However, it does put you at the mercy of the till operator and as Eric Morecambe was wont to say 'There's no answer to that!' I do hope that you find my suggestions of assistance.
Customer: replied 1 year ago.

will the revenue not suggest that we are doing this to separate sales so that we dont hit the vat threshold.

Expert:  bigduckontax replied 1 year ago.

There is always that danger which is why my original suggestion was separate tills, preferably with key access only available to the appropriate waiting staff. You should have a written agreement in place setting out the exact conditions for the businesses you are operating and how they intermingle to assist in heading off this approach by HMRC.

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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.
Customer: replied 1 year ago.

How would this work on the receipt side. for example the till receipt will need to have a vat number. therefore most likely my clients, but who ever reads it will assume that it includes the vat on the food. hope that makes sense.

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