What Expenses Can I Claim Back as a Restaurant | MSF Associates

Takeaways and restaurants face a unique set of financial challenges when running their businesses. With high overhead costs, taxes, and other fees to contend with, it can be difficult for these establishments to turn a profit. Fortunately, there are certain expenses that takeaway and restaurant owners can deduct from their taxable income in order to reduce their tax bill. In this blog post we'll take a look at some of the common deductions takeaway or restaurant owners may be eligible for.

Cost of Goods Sold

First, takeaway/restaurant owners can deduct the cost of goods sold (COGS) from their restaurant sales. This would include ingredients or other supplies used to make and serve food to customers. Takeaways may also be able to deduct the cost of wages paid to its employees as a business expense. In addition, takeaway/restaurant owners can deduct certain business-related expenses such as rent, utilities, insurance premiums, advertising costs, and professional fees from their taxable income.

Another common deduction for takeaway/restaurant owners is depreciation expenses. This includes any property or equipment that has been purchased for use in running the business. Takeaways/restaurants may also be eligible for deductions related to employee benefits such as health insurance and retirement plans. But be careful as some expenses aren't actually allowable for tax purposes.

Travelling and Delivering

Takeaway/restaurant owners can deduct certain business-related travel expenses such as airfare, lodging, and car rental costs related to conducting business activities. Takeaways may even be able to deduct the cost of meals while traveling on business trips. Using fuel to fill up your car to deliver your customers food is also an allowable expense.

By taking advantage of these deductions, takeaway/restaurant owners can greatly reduce their tax burden and maximize their profits.  It is important for takeaway/restaurant owners to consult with an accountant or other qualified tax professional in order to ensure that they are claiming all eligible deductions. Doing so will help takeaway/restaurants stay compliant with tax laws and minimize any potential penalties or fees associated with filing incorrect tax returns.

With the right strategies in place, takeaways/restaurants can run their businesses efficiently and maximize their profits. Takeaway and restaurant owners should keep a close eye on their finances and be sure to take advantage of all eligible deductions when filing their taxes. Doing so will help takeaways/restaurants lower their tax burden and make the most of their business operations.

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This post is for informational purposes only and does not constitute legal or financial advice. Please consult with a qualified professional before making any decisions regarding deducting expenses from taxable income as laws vary between jurisdictions.

For more information about takeaway/restaurant related deductions, please contact us by booking a call with our team, calling us on 0113 240 4100, or via our contact form. As one of the leading accountancy firms in Leeds, we are confident that we can help you achieve even greater business and financial success!