Peter Davies’ Post

Peter Davies' post on Tom Kerridge’s insights is spot on. The recent tax hikes are a big concern for the hospitality industry. At Moore Kingston Smith, we have strategies to help mitigate these effects. Contact us for a chat. #Hospitality #TaxHikes #BusinessImpact #TomKerridge

As we gear up for this year's general election, the #hospitality sector is at the forefront of #political promises and commitments. It's encouraging to see the main political parties outlining their plans to support this crucial industry, which has faced unprecedented challenges in recent years. From tax reliefs to funding for skills training, the pledges aim to rejuvenate and sustain the vibrant hospitality sector. Whether it's about reducing VAT for hospitality businesses, investing in workforce development, or providing grants and financial support for small businesses, these proposed policies could have a significant impact on #restaurants, #bars, #hotels, and more. The full breakdown of each party's promises can be found in the comprehensive article by Restaurant Online. Let's stay informed and engaged to ensure that the hospitality industry gets the support it needs to thrive. 🍽️🍷 #HOSPOB2B #HTE24 #RTIE24 #TDE24 #HRIE24 #CBE24 #SFB24 #hospitalityevents #GeneralElection https://lnkd.in/gVqqSZ_f

Restaurant staffing is ever changing and the tax kitchen can get just as heated. Here's how to keep your cool and cook up some smart tax strategies: 📊 Employment Tax Navigation: With staff coming and going, keeping up with employment taxes is key. 💸 Savor Tax Deductions: Frequent staffing changes mean more spending on recruitment and training, but these costs can often be tax-deductible. 🌟 Work Opportunity Tax Credit Magic: High turnover might just have a silver lining. 👨🍳 Ready to whip your restaurant's taxes into shape? We can help. Let's chat! #restaurantfinance #foodandbeverage #yyc #accountific

A mixed bag of a #Budget2024 for the food and drink sector. Brewers and pub groups will have been pleasantly surprised by the cut in draught duty, but the Wine and Spirit Trade Association and the Scotch Whisky Association are both spitting feathers about the CPI tracked increase in duty, with the SWA calling it a “betrayal” of Keir Starmer’s pledge to back the sector. However, the mood music coming from the Treasury for some time had been that an increase in duty was on the table, so the shock emanating from the two trade associations should perhaps be taken with a pinch of salt… Similarly, some movement around the soft drinks industry levy, which is now to rise in line with inflation, was also not entirely surprising. That said, producers of other categories often considered HFSS will be relieved that plans to expand the levy to other sectors don’t appear to be on the table at the moment. In reality, the sector specific measures in the Chancellor’s announcement pale into insignificance in light of the other revenue raising measures placed on businesses as a whole. While smaller, independent producers, retailers and venues will breathe a sigh of relief that the increase in Employment Allowance will largely mitigate the increase in employer N.I contributions, this isn’t the case for larger businesses. Kate Nicholls from UK Hospitality has claimed that the Budget will cost hospitality businesses £1bn in additional taxes. I’ve long argued that food manufacturing isn’t given the prominence and support by Government that this crucial sector deserves – and this wasn’t a Budget that is going to change that view. However, it’s interesting to note the position taken by the Food and Drink Federation, which welcomed the Chancellor’s “focus on a long-term approach to tax and regulation” and stands “ready to work with government to make the most of this support.” For those seeking to shape policy, it's worth remembering that, despite Labour's travails so far in Government, this remains a party with a massive majority and several more Budgets to come. With that in mind, perhaps the FDF and others have determined that, rather than picking a fight with the government now, ultimately, you catch more flies with honey. https://lnkd.in/eCZ_TUht

For those wondering just how difficult business is for the Hospitality Industry, absolutely critical that State Governments, and the National Government wake up to the negative effects of much of the legislation over the past two years post Covid. it is critical that they open their ears to alternatives to Payroll Tax, GST and FBT! “From an industry perspective, hospitality is by far the highest risk industry and is doing the worst," CreditorWatch chief executive Patrick Coghlan said. "It's got the highest risk of insolvency and we expect that to continue.” The failure rate of small to medium-sized food and beverage businesses is the highest of any industry at 7.5 per cent, according to CreditorWatch data. Hospitality and construction top the insolvencies data provided by the Australian Securities data with 1751 accommodation and food businesses entering administration for the first time out of 12,562 going concerns. https://lnkd.in/gw5BxHvJ

🍸🍺 🌟 **Budget Breakdown: A Blow to Hospitality!** 🌟🍺🍸 The new budget’s impact on the hospitality industry is tough to swallow. The government is tightening the screws with rising taxes and costs! Key issues include: 📈 **National Insurance Increase**: Jumping from 13.25% to **15%** in April 2025. 💰 **Wage Rise**: A 6.2% bump in wages. 🏢 **Business Rates**: Reduced from 75% to 40%—not enough! 🏢 **Corporation Tax Increase**: Rising from 19% to 25% for profits over £250,000, which could stifle growth and investment in an already struggling sector. 🍷 **Increased Wine Tax**: Higher duties on wine will force venues to raise prices, potentially reducing sales and profits. Labour’s 1.7% reduction in draft product duty feels like a backhanded gesture, especially with these increased taxes on packaged products such as spirits and wine. Since 2020, around **30,000 hospitality businesses** have closed, including: - **The Ivy Collection**: Several locations shut down, impacting around 1,000 jobs. - **Wetherspoons**: 32 pubs closed permanently, resulting in approximately 1,500 job losses. - **Stonegate Pub Company**: Over 200 venues closed, leading to around 1,000 job redundancies as I know first hand. Additional challenges include: - **Health and Safety Regulations**: Increased operational costs. - **Supply Chain Disruptions**: Shortages and price increases. - **Brexit**: Labor shortages affecting staff availability. - **Proposed Smoking Ban**: Banning smoking in outdoor areas could deter customers and reduce revenue for venues reliant on outdoor seating. Over **500,000 jobs** have been lost in our sector due to these struggles. The recent budget changes and ongoing challenges in the hospitality sector create a complex environment for entrepreneurs looking to start their own businesses and attract investment. **Please support your local bars, pubs, and restaurants—they need your help to survive!** 💔 What a mess! I’m hoping for a turnaround soon because we need support, not more hurdles. 💪 #Budget2024 #HospitalityStruggles #SupportLocal #SaveOurPubs #fightforhospitality

💰 The Autumn Budget has been announced by Chancellor Rachel Reeves, outlining key changes to support that can be expected by the hospitality industry in the coming months. 👉Following calls for reform from across the on-trade sector, the government has announced the introduction of permanently lower business rates multipliers for high-street retail, hospitality and leisure properties from 2026-27. During the interim period between 2025-26, the small business multiplier will be frozen, while retail, hospitality and leisure will receive 40% relief up to £110,000. Also announced was a 1.7% cut to alcohol duty on draught products, however duty on all other alcohol products will increase by RPI from February 2025, alongside the end of the wine duty easement. Since the proposed wine duty changes were announced, we have been supporting our customers and producers, outlining how the new duty bands will impact them. 👉 Stay tuned for further analysis of the Autumn 2024 budget, including the announced increases in National Living Wage and employer National Insurance contributions (NICs) from April 2025.

An immediate and obvious impact on businesses and employees, and a fiscal cliff for city and county governments who rely on sales tax revenue to fund their services: https://lnkd.in/e-VZQfgY

On an initial review of the #budget measures as they relate specifically to pubs & bars, it seems like a case of giving with one hand (rates relief & duty cuts) and taking with the other (employer’s NIC increase). I also believe the measures don’t go far enough to support the hospitality industry, which is still reeling from the challenges of the past four years. Headlines: 1. Business rates relief extended at 40% up to a cap of £110,000 per business through 2026. 2. Small Business Tax Multiplier freeze prevents an increase in tax liabilities next year, providing financial stability for smaller establishments. 3. Draught Beer Duty cut by 1.7%, translating to about a penny off a pint. 4. Employer's National Insurance Contributions (NICs) rate increased by 1.2 percentage points to 15%, with the threshold lowered from £9,000 to £5,000. While these measures are broadly positive for smaller hospitality businesses, more comprehensive support is needed to fully address ongoing challenges like rising food and energy costs. Businesses also need to plan for when these temporary supports are no longer in place. #hospitality #economy #ukbudget

Did you know a federal tax credit can offset the Social Security and Medicare taxes paid on employee tips? Also known as the Tips Credit, the IRS allows this credit for employers who have employees who receive tips from customers for providing, delivering, or serving food or beverages for consumption, provided the employer pays or incurs employer Social Security and Medicare taxes on those tips. Many companies, including marinas, spas, breweries, event centers, hotels, and restaurants, may qualify for this credit. https://lnkd.in/eFd9A7Wt #TipsCredit #IRS #EmployeeTips #Form8846 #SocialSecurity #MedicareTaxes