Till and card takings reconciled
Daily takings matched to card settlements and bank deposits, with card fees shown as a cost.
Accountants for retail and independent shops
Bookkeeping, VAT, payroll and year-end accounts for shops. Takings are reconciled to the till and the card provider, VAT is worked out on goods sold at different rates, and stock is counted and valued at the year end.
What you get
- Till and card takings reconciled
- VAT set up for mixed-rate goods
- Stock counted and valued at the year end
- Payroll for part-time and seasonal staff
- Margin by product category
- One fixed monthly fee
The figures behind a shop's VAT and wages
The VAT registration threshold, the VAT inside a till price, and the two figures that set employer National Insurance on shop wages.
£90,000VAT registration, on rolling 12-month turnover
1/6The VAT inside a price that includes 20% VAT
£5,000Pay per employee before employer NI starts at 15%
£10,500Employment Allowance off the employer NI bill
2026/27 figures. See key tax dates and the calculators for the full picture.
The dates a shop works to
Most of a shop's record keeping happens daily, at the till.
Every dayTill cashed up against its reading. Card takings matched to the provider's settlement.
Every paydayPayroll reported to HMRC on or before the day staff are paid.
Every VAT quarterReturn and payment, one month and seven days after the period ends.
Before ChristmasStock and staff both at their peak, and the cash forecast matters most.
Your year endStock counted and valued at the lower of cost and selling price.
31 JanuarySelf Assessment return and balance due for sole traders and partners.
Source: gov.uk VAT, PAYE and Self Assessment guidance, checked October 2026.
A shop's VAT depends on what is on the shelves
Many shops sell goods at more than one VAT rate. Most food, children's clothes and printed books are zero rated. Sweets, crisps, soft drinks, adult clothing and household goods are standard rated at 20%. Domestic fuel and children's car seats are at 5%. One till total can contain all three.
A till that records each sale against its VAT rate gives the right figure without further work. Where the till cannot do that, HMRC's retail schemes work the split out another way: from the goods you bought in for resale, or from the expected selling prices of your stock. Each scheme has its own conditions, and the choice between them changes the VAT you pay each quarter.
If you also sell online, the e-commerce page covers marketplace settlements and selling into the EU.
What moves the numbers in a shop
Most of a shop's bookkeeping starts at the till, and these are the areas where the figures most often go wrong.
- Card takings
- Card providers pay out after deducting their fees, and on their own timetable. Sales are recorded at the full amount the customer paid, the fees are recorded as a cost, and each settlement is matched to the days of trading it covers.
- Cash
- Each day's cash-up is recorded against the till reading, including cash paid out of the till for wages or supplies. In an HMRC enquiry, those daily records are the evidence that takings were recorded in full.
- Stock and shrinkage
- Closing stock is valued at the lower of what it cost and what it will sell for. Damaged, out-of-date and stolen stock is written down, and the closing figure feeds straight into profit and so into tax.
- Margin by product category
- Gross margin by category, after card fees, discounts and wastage, shows which lines pay the rent and which only take up shelf space.
- Business rates
- Rates are set separately in England, Scotland, Wales and Northern Ireland. Wales charges a lower multiplier on retail properties with a rateable value below £51,000. Our business rates calculator covers England, Scotland and Wales, and the Northern Ireland rates guide explains the system there.
- Making Tax Digital
- Since April 2026, sole traders with qualifying income over £50,000 keep digital records and send quarterly updates to HMRC. The threshold falls to £30,000 in April 2027. See Making Tax Digital dates.
Employer National Insurance on three part-time staff
A shop company with three part-time employees
A limited company running one shop. It employs three part-time staff, each paid £14,000 a year.
- Pay above the £5,000 threshold, per employee
- £9,000
- Employer NI at 15%, per employee
- £1,350
- Employer NI for all three
- £4,050
- Employment Allowance claimed
- −£4,050
- Employer NI paid for the year
- £0
The Employment Allowance is up to £10,500 a year and is claimed through payroll software. Without the claim, the company pays the £4,050. The remaining £6,450 covers employer NI on staff taken on later in the same tax year. Each of the three earns above the £10,000 auto-enrolment trigger, so each is also enrolled in a workplace pension with an employer contribution.
Worked through at 2026/27 rates from our own calculators, which follow gov.uk guidance checked in July 2026. An example. Your figures will differ.
What we do for shops
VAT on mixed-rate goods
VAT rates set up correctly on the till, or the retail scheme that suits your product mix.
Stock counted and valued
A year-end count valued line by line, with damaged and slow-moving stock written down.
Payroll for part-time and seasonal staff
Variable hours, holiday pay, auto-enrolment and the Employment Allowance claimed.
Margin by category
Gross margin for each product category, after card fees, discounts and wastage.
Cash planned for the busy season
A forecast of stock buying, wages and VAT ahead of Christmas, so the cash is there when the stock has to be paid for.
Advisory and finance support for growing businesses
Business Pulse
An annual budget, a rolling 12-month cash flow forecast, management accounts and a review meeting every month or quarter. From £249 + VAT a month.
About Business PulseOutsourced finance team
Bookkeeping, payroll, VAT, customer invoicing and month-end, done for you in Xero. From £750 + VAT a month.
About the finance teamPart-time finance director
Peter Allen as your fractional finance director: an annual plan, a cash flow forecast, a KPI dashboard and a quarterly board meeting. From £2,000 + VAT a month.
About the finance director serviceWhat people in this trade ask us
How much does it cost?
A fixed monthly figure, agreed in writing before any work starts. For a shop the fee depends on the number of tills and card providers to reconcile, how many transactions go through, how many staff are on the payroll, and whether you are VAT registered. The instant quote gives the monthly figure in four questions. FreeAgent is included, and questions do not carry an hourly charge.
Which VAT retail scheme should my shop use?
It depends on whether your till can record each sale against its VAT rate, and on how your goods split between the rates. If the till can do it, recording at the point of sale is usually simplest. If it cannot, the apportionment and direct calculation schemes work the split out from your purchases for resale or from the expected selling prices of your stock. We look at a quarter of your figures and tell you which scheme fits your mix.
Do I record card takings before or after the card fees?
Before. Your sales are the full amount the customer paid. The card provider's fees are a separate cost. Recording them that way keeps your turnover right for VAT and shows what taking card payments costs you.
How do I value stock at the year end?
Count it, then value each line at the lower of what it cost and what it will sell for. Damaged, out-of-date and slow-moving stock is written down. The closing stock figure goes straight into profit, so it decides how much tax you pay on the year.
Can you run payroll for staff whose hours change every week?
Yes, weekly, fortnightly or monthly. Holiday pay is worked out on actual earnings, auto-enrolment is checked every pay period, and the Employment Allowance is claimed where the business qualifies. See payroll and pensions.
Do you work with shops in Scotland, Wales and Northern Ireland?
Yes. Business rates are set differently in each, and in Scotland the income tax bands are different too, which changes how a shop owner's salary and dividends are best split. Our Northern Ireland work is run from the office in Ballymena.
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