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Real Questions Answered

Ask BondEsq. Real Questions. Real Answers.

Straight answers to the financial questions UK business owners ask the most — grouped by industry. We’ve answered everything from payroll headaches to tax prep struggles to navigating compliance chaos. If you’ve got a question, we’ve probably answered it below.

Food & Beverage

1. What’s the easiest way to track staff hours in a busy restaurant?

Use a digital time-tracking tool that integrates with your payroll system. It’ll save hours of admin and reduce costly errors from handwritten logs.

2. Do I have to auto-enrol every kitchen staff member into a pension?

If they’re over 22 and earning more than £10,000 per year, yes — even part-timers. Auto-enrolment applies to hospitality just like any other sector.

3. How should I pay zero-hour contract workers in my café?

Accurately track hours worked, issue payslips, and make sure all holiday pay is correctly calculated. HMRC expects full compliance, even with flexible shifts.

4. What VAT rate applies to takeaway sandwiches?

Cold takeaway food is generally zero-rated, but anything hot or with service (like toasted sandwiches) can trigger standard VAT. Clarity matters at the till.

5. How do I manage staff tips — cash vs. card?

Tips paid via card are subject to PAYE and should go through payroll unless part of a tronc system. Cash tips are trickier — keep good records and advise staff.

6. Do I need to submit digital VAT returns under MTD?

Yes — all VAT-registered food businesses must use MTD-compliant software to file VAT returns. Paper forms are no longer accepted unless exempt.

7. What’s the best way to pay kitchen and waiting staff fairly?

Use hourly rates that comply with NMW, add clear holiday accrual, and make room for bonuses or service charge distribution. Transparency builds loyalty.

8. Can I claim VAT back on restaurant food purchases?

Only on items bought solely for resale. Staff meals or personal use aren’t reclaimable. Keep receipts and separate personal from business costs clearly.

9. How do I handle payroll when rotas change weekly?

Use a real-time rota system integrated with payroll. Sync hours, break times, and holiday to avoid disputes and streamline your end-of-week process.

10. What counts as ‘tronc’ and when do I need one?

A tronc is an independent arrangement for tips. It requires a troncmaster and formal setup — but it can reduce NI costs. HMRC has strict rules, so set it up right.

Let’s Talk Payroll or VAT for Your Restaurant →

11. What’s the difference between gross pay and take-home for chefs?

Gross pay is before deductions — tax, NI, pension, etc. Your chef’s payslip should itemise all deductions clearly to avoid confusion or disputes.

12. How do I budget for rising food and staff costs?

Create a rolling forecast using real data from your POS and payroll software. Factor in inflation and use historical costs to model cash flow more accurately.

13. Should I use a bookkeeper or accountant for VAT filings?

If VAT is straightforward, a bookkeeper may be enough. But for restaurants with multiple rates and supplies, an accountant ensures full compliance and reclaim accuracy.

14. Can I backdate VAT if I forgot to register?

Yes, but only within specific time limits. HMRC may charge penalties and interest. Registering late can also impact how much input VAT you can claim.

15. What software do food businesses use for accounting?

Xero, QuickBooks, and Sage are all popular — just ensure it’s MTD-compliant and set up for industry-specific needs like staff scheduling and inventory.

16. Do I need separate payroll runs for casual and full-time staff?

Not necessarily — you can run one payroll with clear labels and categorisation. Just make sure all pay types, holidays, and hours are correctly reported.

17. How do I handle tax returns for a street food vendor?

Register for Self Assessment, keep records of costs, ingredients, pitch fees, and fuel. Even if you’re mobile, HMRC still expects full reporting.

18. Are uniform costs tax-deductible for kitchen staff?

Yes — if the uniforms are branded and required for work. Personal clothing, even if only used at work, generally doesn’t qualify.

19. How can I simplify cash flow in a small café?

Yes — a portion of utilities, internet, phone, and workspace can be claimed if used for business.

20. Should I register as a limited company or sole trader?

It depends on your risk level and profit. Sole traders are simpler but offer less protection. If your café is growing fast, a limited company can be more tax-efficient.

Book a Free Call About Your Food & Beverage Finances →

Media & Entertainment

21. How do I handle inconsistent income from gigs or freelance work?

Use monthly averaging for budgeting and set aside 20–30% for tax. Cloud accounting tools like Xero help track peaks and dips with ease.

22. Can I claim home studio expenses or rehearsal room costs?

Yes — a portion of rent, utilities, internet, and soundproofing if used exclusively for your work. Keep clear records and use simplified home office methods.

23. How can I track multiple income streams for different clients and projects?

Use cloud bookkeeping like Xero or QuickBooks — or our spreadsheet tracker designed for media professionals.

24. What taxes apply if I get paid overseas or through platforms like YouTube?

HMRC treats all income as taxable — even global royalties and online content earnings. Keep a record and get advice if earning in multiple currencies.

25. Do actors, musicians or presenters qualify for any special tax reliefs?

Yes — creative professionals can claim expenses under the ‘HMRC actor/musician guidelines.’ You may also qualify for averaging relief.

26. How do I register my entertainment business for tax if I’m a solo artist?

Register as a sole trader via gov.uk/set-up-business. If earning over £1,000/year from performances, sponsorships, or appearances — registration is required.

27. Should I operate under my personal name or create a limited company?

If your work involves big contracts, endorsements, or touring — a limited company can reduce personal risk and improve tax flexibility.

28. Can I offset travel, costumes, or wardrobe purchases?

Yes — if the items are used solely for performances, shoots, or professional content creation. Everyday wear usually isn’t claimable.

29. Do I need to register for VAT as a performer or artist?

If your income exceeds £90,000/year, yes. If touring or charging VAT to agencies or venues, voluntary registration might benefit your cash flow.

30. How do royalties or licensing income get taxed?

Royalties are treated as taxable income. You’ll need to report this as part of your self-assessment return and may need to apply for foreign tax relief.

Book a Free Call About Your Media & Entertainment Finances →

31. How do I get paid faster for event or production work?

Use 7-day terms, invoice before delivery when possible, and send polite payment reminders. BondEsq can help chase late payments.

32. Can I deduct camera equipment, instruments, or editing software?

Yes — capital allowances or annual investment relief may apply depending on cost. These are essential business tools.

33. Do influencers or content creators need to register with HMRC?

Yes — once you earn over £1,000/year. Sponsorships, affiliate links, and brand deals all count as taxable income.

34. What if my income varies month to month?

Use rolling budgets and set up a separate savings pot for tax and rainy days. We help clients forecast 3-month trends.

35. Can I get help budgeting for seasonal gaps between productions?

Yes — we help production freelancers and agencies manage cash flow between contracts. Scenario planning is key.

36. Can I split income with a partner or family member?

Only if they actively work in the business. HMRC expects a fair division of duties and pay to qualify for income splitting.

37. Do I need to register for self-assessment if I work part-time as a DJ or actor?

Yes — if you earn £1,000+ outside PAYE. Register by October and submit your return by January 31 each year.

38. Can I offset studio hire or venue rental?

Yes — as long as the venue is used for business activities like filming, rehearsals, client events, or production work.

39. Do freelance editors, composers or voice-over artists qualify for flat rate VAT?

Possibly — if VAT registered. The flat rate scheme can simplify VAT but varies by industry classification. Ask us for a tailored review.

40. How do I stay compliant if I earn income from multiple sources?

Track each income stream separately in your records. BondEsq can help you create a simplified system and keep you HMRC-ready.

Let’s Talk — Book a Real Talk Call →

Residential & Construction

41. How do I manage project cash flow without overdrafts?

Use a cash flow planner tailored for builders — match expected stage payments with outgoing materials and payroll costs. We’ll help you map this out.

42. Can I claim tools, boots, and safety gear as tax-deductible?

Yes — if they’re necessary for your trade, they’re typically allowable business expenses. Keep receipts and records for proof.

43. What’s the best way to handle subcontractor payments?

Use CIS-compliant payroll tracking — we’ll help you file monthly returns and avoid late penalties from HMRC.

44. Do I need to register for CIS as a sole trader or limited company?

If you work in construction — yes. We can register you and keep you compliant each month.

45. What’s the easiest way to estimate project costs?

Use our Construction Estimator Spreadsheet to plan labour, materials, overheads, and profit. It’s a lifesaver.

46. Can I get VAT refunds on building materials?

Depends on the job — we’ll help you assess if the work qualifies for reduced or zero-rated VAT, and how to recover what’s owed.

47. How do I deal with late-paying clients?

Use our template contracts with staged payment terms and penalties for late payment. We’ll also support you with escalation steps.

48. Do I need a business bank account if I’m a one-man band?

100%. It separates personal from business finances and simplifies year-end tax filing.

49. What records do I need to keep for HMRC inspections?

Job quotes, invoices, receipts, CIS statements, mileage logs — keep at least 6 years’ worth. We’ll keep it tidy for you.

50. Can I get paid through apps like PayPal or SumUp?

Yes — but make sure you declare that income and track fees. We’ll help you account for it all correctly.

51. What if my construction jobs run over budget?

We’ll show you how to add contingency buffers, review profit margins, and protect your cash flow.

52. Is there a way to handle VAT on new builds vs renovations?

Absolutely — new builds are zero-rated, while renovations often fall under reduced or standard rates. We’ll make sure your VAT returns are right.

53. What’s the best way to pay a small construction team?

Either PAYE for regular employees or CIS for subcontractors. We’ll help you choose the right setup and file returns.

54. How can I save time on quotes and invoices?

Use our editable invoice and estimate templates made for trades. Drop in your numbers and send them fast.

55. What’s the right structure — sole trader or limited?

Depends on liability and tax strategy. Sole trader is simpler. Limited offers more protection. We’ll help you weigh it out.

56. What do I do if I missed a VAT return deadline?

Act fast. We’ll help you get back in good standing, appeal penalties, and avoid interest charges.

57. Can I use my personal car for site visits and claim mileage?

Yes — we’ll help you track mileage properly for tax relief and reimbursements.

58. What happens if I lose my receipts?

We’ll guide you on what HMRC will accept (e.g., bank records, duplicate invoices). Don’t panic — but don’t make a habit of it either.

59. Can I claim office expenses if I work from home as a builder?

Yes — a portion of utilities, internet, phone, and workspace can be claimed if used for business.

60. How do I prepare for quiet seasons?

Build up reserves during peak periods, automate your savings, and plan 6–12 months ahead. We’ll help you create a seasonal budget.

Book a Free Call About Residential or Trades Finances →

Retail & Wholesale

61. How do I track stock levels and avoid over-ordering?

Use a real-time inventory tracker. We’ll show you how to set stock thresholds and reorder points to avoid tying up cash in excess inventory.

62. Can I reclaim VAT on unsold inventory?

Yes, as long as the goods were purchased for business use and not written off. We’ll show you what records HMRC expects.

63. What’s the best way to manage seasonal sales?

Plan for high and low months — use past data to forecast stock needs, staffing, and marketing. We can help you create a seasonal sales map.

64. Can I use my shop premises for home office deductions?

Yes, if part of the space is clearly separated and used for admin or management. We'll help you apportion costs fairly for tax claims.

65. Do I need to register for VAT if I sell through marketplaces?

If your sales exceed the £90k threshold, yes. Marketplaces also report to HMRC. We’ll make sure you’re registered and compliant.

66. How do I handle returns and refunds for bookkeeping?

Record each return separately and reconcile it against the original sale. We’ll help you keep things tidy in your books and POS system.

67. Can I deduct uniforms and branding as expenses?

Yes — branded clothing used for work can be claimed. Save receipts and itemize them correctly in your accounts.

68. What’s the best way to pay part-time retail staff?

You can pay weekly or monthly using PAYE. We’ll help set up payroll, handle pension auto-enrolment, and file to HMRC on time.

69. Do I need a separate bank account for my online store?

Yes — it’s best practice. It helps track sales, fees, and taxes clearly. We’ll guide you through setup and reconciliation.

70. How do I prepare for Black Friday or seasonal rushes?

Start 6–8 weeks out. Forecast sales, secure inventory, schedule shifts, and plan your marketing spend. We can help you build a promo calendar.

71. Can I claim software subscriptions used for POS?

Yes — accounting, inventory, or POS software are valid business expenses. We’ll show you how to track monthly and annual charges.

72. Do I need receipts for every small purchase?

Ideally, yes. But for small recurring purchases, we’ll help you track it with bank statements and digital logs. Don’t guess.

73. How do I handle cash sales and reconcile daily takings?

Use a cash log and reconcile with till receipts daily. We’ll help you stay clean and avoid HMRC suspicion.

74. What’s the best way to pay yourself from the business?

Depends if you're sole trader or limited company. We’ll walk you through salary vs drawings vs dividends.

75. Do I need to report till discrepancies to HMRC?

If it’s a regular issue, yes. Otherwise, make a note and track any patterns. We’ll help you identify why it’s happening.

76. How do I account for product samples and giveaways?

Track them as business expenses or marketing costs. We’ll help you file them correctly to maximise deductions.

77. What’s the best business structure for an online-only retailer?

Limited company is often best for legal protection and tax planning. We’ll assess your exact setup and guide the registration process.

78. Can I sell personal items through the business?

Only if it’s business-related or bought with the intent to resell. We’ll help you distinguish clearly for tax purposes.

79. How do I prepare for stock audits?

We’ll provide a checklist, inventory tracker, and year-end procedure. You’ll stay compliant and confident come audit season.

80. Can I sell goods overseas and stay compliant with UK VAT?

Yes — but there are extra rules. We’ll show you how to register for IOSS, declare export sales, and handle EU VAT thresholds.

Book a Free Call About Retail & Wholesale Finances →

Sole Traders & Startups

81. Do I need to register as a sole trader immediately?

If you're earning over £1,000 in self-employed income, yes. It’s quick and free — and we can walk you through the steps.

82. What business expenses can I claim as a sole trader?

You can claim anything ‘wholly and exclusively’ used for business — think tools, software, marketing, phone bills, even home office use.

83. Should I be a sole trader or start a limited company?

It depends on your income, risk, and future goals. Sole trader is simple, but a limited company can offer tax advantages. Let’s assess what’s best for you.

84. How do I keep my startup accounts organised?

Start with a separate bank account, track every expense, and use cloud tools like Xero or spreadsheets. We’ll help you set up a system that scales.

85. Do I need an accountant as a startup?

Not legally — but having one saves time, avoids costly errors, and sets you up right from day one. Most of our clients say they wish they had help sooner.

86. What if I have a part-time job and run a business?

You can do both. We’ll help you file the right tax return, avoid overpaying tax, and keep your income streams legally separate.

87. How do I set pricing as a new business?

Factor in your time, costs, and target profit — and check market rates. We’ll help you avoid undercharging and pricing yourself into burnout.

88. Can I claim for startup training or courses?

If they relate directly to your business skills or industry, yes. HMRC allows learning expenses if they maintain or improve your existing skillset.

89. When do I pay tax as a sole trader?

You file a Self Assessment once a year. Payment is due by 31 January following the end of the tax year. We’ll help avoid last-minute panic.

90. Can I get funding as a small startup?

Yes — grants, startup loans, or even investors. We’ll help you prepare financials, budgets, and business plans to access funding confidently.

91. Should I use cash accounting or traditional?

Cash accounting is simpler and easier for many startups. We’ll explain the pros and help you choose what’s best based on your goals.

92. What happens if I can’t pay my tax bill?

Talk to us before HMRC does. We can negotiate a Time to Pay arrangement and help you avoid penalties or serious stress.

93. How do I switch from sole trader to limited company?

We’ll set up the company, notify HMRC, and transfer assets cleanly. You’ll keep momentum while protecting your new structure.

94. Can I work from home and still claim expenses?

Absolutely. There are simplified and detailed methods. We’ll help you claim electricity, internet, rent proportion, and more — legally.

95. Do I need to insure my startup?

Yes — public liability, professional indemnity, or contents insurance depending on your setup. We’ll walk you through what applies.

96. Can I pay myself if the business isn’t profitable yet?

Yes — if there’s cash in the business, you can take drawings as a sole trader. But let’s ensure your cash flow isn’t drying up in the process.

97. What financial software should I use?

Xero, QuickBooks, or even a smart spreadsheet depending on your stage. We’ll help you avoid wasting time and money on the wrong tools.

98. Do I need to charge VAT from day one?

Only if you cross £90k in annual revenue. But some startups register early for image or reclaiming VAT. We’ll help you decide.

99. What if I make a mistake on my tax return?

It’s fixable. Don’t panic. We’ll amend your return, explain to HMRC if needed, and help you avoid a repeat next year.

100. Can I hire a family member in my startup?

Yes, if they actually work and are paid reasonably. We’ll help with PAYE, contracts, and avoiding red flags with HMRC.

Book a Free Call for Startups & Sole Traders →

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Food & Beverage Media & Entertainment Residential & Construction Retail & Wholesale Sole Traders & Startups
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