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Food and Drink Businesses

Food and Drink Businesses

Are you a foodie entrepreneur? Look no further than Roake & Cook, attentive chartered accountants who bring a modern approach to rural accounting. We specialise in serving rural businesses, and we’re particularly focused on supporting food and drink clients like you who value sustainability and the countryside they live and work in.
We are deeply invested in helping your food and drink business grow as sustainably as the ingredients you work with. As a small firm with a big heart, we pride ourselves on offering personalised attention to each client.
Our services cater to every step of the food and drink supply chain. Whether you’re a farmer, producer, café, pub, artisan restaurant, farm shop, or independent shop, we have the expertise to support your accounting needs. With our assistance, you can embrace modern accounting and have greater visibility over your business, empowering you to make informed decisions.

Here are some examples of how we can help you:

The food and drink sector is a dynamic and complex sector and one that is constantly changing. The industry faces several challenges, from supply chain interruptions, rising labour costs, shifting customer preferences and the effects of climate change. We are here to help you not only survive today’s challenges but also thrive.

Bookkeeping

In our opinion, this is one of the most crucial parts of any business. Having up-to-date and accurate financial information is the cornerstone of all aspects of your business.
Understanding how much it costs you to produce your product, what your profit margin is, how much input price increases will affect your profit levels and how to pay yourself all stem from having accurate bookkeeping.
We provide bookkeeping services, to free up your time and let you focus on running your business, and we also assist in implementing new software and provide training for those who wish to do it themselves.

Cash-flow

Cash flow is the lifeblood of any business, but particularly vital with new and growing food and drink businesses.
Changes in the availability of ingredients, import costs, inflation and labour costs can all have a dramatic impact on profitability and cash flow. We help you understand how these changes could affect your business and help make plans to mitigate this.

Tax Services

We help with all aspects of tax planning, including helping you understand your tax obligations and when payments are due.
Many new food and drink businesses run their business alongside other employment. We help you work out the best business structure and remuneration strategy to maximise tax savings and keep money in your pocket.

R&D Tax Credits

It’s important to understand the rules around whether you qualify for R&D Tax Credits. We can help you identify if you qualify, and if so, help prepare your claim to provide valuable tax savings to boost your cash flow.

VAT

VAT can be a complicated area for food and drink businesses. Understanding when you need to register, what rates to charge, and the right VAT scheme for your business can be tricky.
We help remove the worry and help you understand what is right for your business, thereby removing the likelihood of penalties and helping maximise your cash flow.
Martin and Helen Cook

Contact Roake & Cook today to schedule a consultation and experience the difference a modern approach to rural accounting can make.

Our husband and wife team brings a personal touch to our services. We genuinely care about our clients and go above and beyond to deliver exceptional service. You won’t be treated like just another number; instead, you’ll experience the warmth and dedication that comes from working with a team that genuinely values your success.

Building lasting relationships is at the heart of what we do.

Here are some examples of clients we have in the Food and Drink Businesses industry and some key examples of how we have helped them:

What sets Roake & Cook apart is our deep connection to the rural community.
As part of the community ourselves, we understand the unique challenges and opportunities that rural businesses face. You can trust us to provide insightful advice and tailored solutions that align with the specific needs of your food and drink business.

Ben, Wine Producer

Ben approached us a couple of years ago to help him understand his obligations with setting up a new business, alongside his current employment.

Having helped Ben register his new business, we have been preparing his personal tax returns and identifying qualifying costs, particularly with regards to working from home. This has resulted in several tax refunds which have been used to grow his wine production business.

Emma, Micro herb producer and animal husbandry

Emma had purchased some land and wanted to set up a new business. Having struggled to find an accountant who understood her vision, we have helped her set-up several businesses over the past couple of years.

Having identified the right business structure to suit her business and personal goals, we provide bookkeeping, payroll, accounts and tax services across all businesses.

Emma had paid for a lot of her initial business expenses via personal accounts. We helped get business bank accounts set-up and connected to Xero, registered the business for VAT, and then identified all qualifying expenses which resulted in a material VAT refund which helped cash flow and has been reinvested into the business.

With Emma on the go, we set-up Dext to allow purchase invoices to be recorded via her phone, and Xero also allows her to review how the business is performing from her phone when away from the office.

David, Farm shop

David has run a farm shop for a number of years. He came to us for help with bookkeeping and running payroll.

We moved his books from a desktop software package, over to Xero. This has allowed us to use Dext to make the entry of purchase invoices and receipts much more  efficient.

David has some customers that are invoiced on a recurring basis, so we have used Xero to set these up on automated invoices, saving time and helping cash flow by ensuring invoices are sent out on time.

The payroll was transferred from HMRC’s online tool to Brightpay. The software allows us to run the payroll efficiently and securely transmit payslips, P45s and P60s directly to employees.

FAQS SPECIFIC TO FOOD AND DRINK BUSINESSES

What is the best business structure for a small business?

Many small businesses start off as a sole trade, often alongside other employment. As the business grows, it may be beneficial to move into a partnership or limited company.
The way in which profits and losses are taxed can be very different depending on the business structure used. There are generally more tax planning opportunities available to limited companies, but the statutory requirements and administration costs are higher than for a sole trade.
It is important to note that as a sole trader, there is no legal distinction between the individual and the business. The owner is liable for all the debts of the business, unlike in a company structure where there can be limited liability.
The best structure will depend on the type of business, other income, and short and long-term goals of the business owner. Making sure your business is structured in the correct way can lead to significant tax savings.

What can I claim as an expense when working from home?

When starting out with a new food, drink, or craft business, it is highly likely you will begin operating from home.
This could be on a part or full-time basis.
Ensuring you are correctly claiming house costs can provide a nice tax saving.
In general, costs that are directly attributable, such as a business mobile or office equipment are 100% allowable.
Other expenses such as utilities, mortgage interest, council tax and insurance are apportioned i.e. you can only claim a proportion depending on the size of your house and usage and the type of business (sole trader or company).

How can I keep track of my records?

Record keeping is vital for any business. As well as complying with tax and regulatory requirements, it helps you understand how your business is performing in a timely manner.

Do I need to register for VAT?

Whilst most food and drink for human consumption is usually zero-rated, some items can be standard- rated.
Catering, alcoholic drinks, confectionery, crisps and savoury snacks, hot food, ice cream and soft drinks are examples of items which must be standard- rated.
Businesses must register for VAT if total VAT taxable turnover for the last 12 months is over £85,000 or if you expect your turnover to go over £85,000 in the next 30 days.

Can I claim R&D Tax Credits?

Research and development (R&D) tax credits are a government incentive designed to reward UK companies for investing in innovation.
Qualifying activities could include developing new products, new packaging solutions, new methods to extend product shelf life, or improving existing production practices.
R&D work must seek an advance in the field of science or technology, not just in your company’s own knowledge.