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HOSPITALITY
THE INTERVIEW
ADRIAN HOUSTOUN, KINGSTON SMITH LLP
Adrian Houstoun is a partner at top 20 accountancy
firm, Kingston Smith LLP. He and his team specialise
in advising sports club managers and players.
L
T writes: My club has been looking at Where are you going to provide the facility you will probably need to employ some senior staff but
ways of maximising profits from our and to who is your target customer? If your you will also need junior staff and, from time-to-time,
bar. We'd like to develop this area but objective is to attract families then you have to casual staff. Some of these you will be able to hire via
need information on the basics of how to provide suitable facilities and food for families. an agency. Your key employees should be looked after,
provide food in order enhance our bar facility Who is going to operate it? Many clubs serve with a salary package which also includes a pension.
and how to look after the staff. Can you help? adequate food served by volunteers and manage to There have been a lot of changes concerning
Adrian Houstoun answers: I'll start by dealing break even or make a modest profit. However, if pensions in the last few years but pension contributions
with the catering aspect of your query. you consider paying staff for key aspects you should still be considered as part of a well structured
You are right to take advice and plan carefully might make more profit. There are consultants retirement plan, despite the changes. Pensions offer
before embarking on this. The number of who can help you with such decisions and a small valuable tax benefits. It is now possible to invest
restaurants which lose money is evidence of how investment in a consultant now may pay dividends whichever is the greater of £3,600 or 100% of salary
easy it is to get it wrong. Do not forget that apart later. Household food suppliers like Heinz and into a pension fund, subject to an overall maximum of
from ensuring that players and members are food distribution companies have a vested interest £225,000 in 2007/08. This is far more generous than
looked after, you want to make a profit, not simply and they will also be very willing to advise you. the previous limits, with higher rate tax relief still
boost turnover. To do this, you need customers to Secondly there is the question of the bar, which available on the payments for qualifying individuals.
enjoy themselves so that they come back. is extremely important and for many mid-tier clubs The employer can also make contributions into the
Firstly, you need to decide what sort of food and is one of their largest single sources of income. The member's scheme and this can often be extremely
menu you want to provide and, consequently, what most crucial aspect to focus on is the beer. I have beneficial as part of a “salary sacrifice” arrangement,
equipment will be needed. Also, anyone who is seen so many clubs fall into the trap of choosing a with consequent reduction in national insurance costs.
going to serve food has a statutory obligation to beer supplier on the basis of what loan is available Pension schemes in the UK are now far more
inform the local authority so that the environmental from the brewery. One club which I recently came flexible than they once were in terms of benefits
health officers can help you to comply with across changed to a different brewery for such and how the money can be invested. There are
regulations. This needs to be done at an early stage. reasons. The majority of members disliked the beer tremendous opportunities but you will need to
Key decisions might be: so much that a couple of years later they had to take professional advice in this area.
What do you need to serve? Maybe your change back. As with food, if you wish to make a Finally, some clubs have issues concerning
players are happy with a greasy burger or pie, profit you will need your supporters and customers whether a person is employed or self- employed.
beans and chips but a good profit-generating to want to return to your facilities. This is particularly an issue for part-time staff. As
facility has to offer better quality. I recommend clubs to take careful consideration of this year, where your self-employed worker has
when selecting their beer supplier and, in most cases, paid his or her tax, HMRC should transfer a PAYE
to look into getting a good cask one. You can obtain liability from you the employer to an employee,
guidance from your local Campaign for Real Ale preventing tax being charged on the same income
“CAMRA” or The Cask Marque Trust. Advisers in twice. Typically (but not always) this will be
the industry will tell you that a good cask beer can where you have treated someone as self-employed
give you a unique selling point compared to other but HMRC re-categorises them as an employee.
local establishments. Also brewers, including less The new provisions are a welcome relief for all
well known ones, are offering beers that appeal to businesses, particularly clubs, and not just for your
new, younger drinkers. The Cask Marque Trust runs bar and catering staff. Any potential liability will
a scheme whereby those that join it are visited now be based on actual tax loss rather than the
unannounced by an independent assessor twice a maximum possible amount due under PAYE.
year. If you pass, you receive a plaque, a framed Establishing or changing your bar and
certificate and merchandising material to act as an catering facilities can be an interesting challenge.
endorsement and to inform your customers of the Plan carefully and you have a far greater chance
quality of the beer that you supply. of getting it right. Good luck!
FSA
If you decide to offer a good cask beer you
need to make certain that you have the Adrian Houstoun is a partner at top 20
appropriate people to run the cellars. It will be of accountancy firm, Kingston Smith LLP. He and
little use providing a fantastic cask beer from his team specialise in advising sports club
pipes that are infrequently cleaned. You may be managers and players. For further information,
surprised to learn how often this happens. contact ahoustoun@kingstonsmith.co.uk or visit
Adrian Houstoun.
Turning to the matter of the bar and catering staff, www.kingstonsmith.co.uk
September/October 2008 | FOOTBALL & SPORTS ARENA | 53
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