How we restructured a Brick Lane curry house for £8,800 annual saving
Client K runs a well-known curry house on Brick Lane trading as a Ltd company, with several family members working in the business — front of house, kitchen and management — but the structure hadn't been reviewed in years. The director remuneration was inefficient, the VAT treatment of eat-in versus takeaway wasn't optimised, and tips weren't structured through a tronc.
We reviewed and restructured. We set the directors' salaries at the NIC-optimal level with dividends split across the family shareholders to use their allowances and bands, reviewed the VAT (eat-in and hot takeaway standard-rated, with the split captured), set up a proper tronc for the waiting staff's tips to save NIC, and claimed the Employment Allowance against employer NIC on the kitchen and waiting staff.