Our Sectors - Hospitality
We know that our clients in the hotel industry have unique issues to contend with. The industry is still highly competitive and we understand that management needs to focus on maximizing its brand and offerings rather than worrying about accounts, tax and other compliance. We can help!
As well as our hotel/accommodation specialists we also have specialists in the food and drink industry – the teams work closely together to service all our clients in the hospitality sector.
Staff and management
With a large pool of staff working in a diversity of locations and service areas, hotel businesses must ensure that their staff costs are correctly allocated.
It is usually beneficial for hotels to keep their employee pool within a separate company from the main trading business, in order to isolate the employer’s risk from the property and trading. This means the employees’ time needs to be recharged to any relevant trading businesses at the correct rate. We can assist with recharge calculations and time recording, ensuring that your records are accurate and reliable.
Structuring
Hotel businesses usually own the properties from which they operate. In all sizes of business it is important to consider the structure of your business.
Is your trading risk isolated from your valuable assets such as property? Is your group structured in the most tax efficient manner? Does your business structure allow for an exit strategy? How about inheritance tax or capital gains tax? It’s important to think about the best way to deal with property ownership.
Through our experience within the hotel industry we can help you answer these questions and create a bespoke solution for your particular circumstances.
VAT
With the provision of a wide range of different services such as accommodation, event room hire, catering for events, meeting rooms, laundry services, food and drink etc., it is vital to ensure that you are compliant with the relevant VAT legislation. (Law 379 "Value Added Tax" date 14/12/2001 with all its amendments)
MCAS will look more closely into businesses where there is a high chance of making errors – make sure you are not going to be penalized with an unexpected bill for under-declared VAT!
Take advantage of our “VAT health check” service to review your current VAT compliance and ensure that you are accounting correctly for your VAT.
Offshore parent companies
If your hotel company has an offshore parent, we have the expertise to deal with the particular issues you may face. Of particular complexity when dealing with international groups are tax rules for example double taxation, transfer pricing rules, or Thin Capitalization.