How long does a UK restaurant have to keep its till records? If it is VAT-registered, at least six years: HMRC's VAT Notice 700/21 says that generally, you must keep all your business records for VAT purposes for at least 6 years, and that includes records of daily takings such as till rolls. HMRC's manual for its own officers adds that Z reports should be consecutively numbered, dated and timed. A limited company keeps its accounting records for 6 years from the end of the financial year they relate to, or longer in some cases; a sole trader keeps them for at least 5 years after the 31 January submission deadline. Daily takings must not be reduced for till shortages from theft of cash, fraudulent refunds and voids, or poor cash handling by staff, and tips records are kept for three years.
What the film covers
- The drawer that is £20 short
- Why is my restaurant reporting inaccurate?
- How a nightly cash-up works: the end of day report
- X report and Z report: the difference
- The business-day cut-off
- Takings by tender
- Float, paid in and paid out
- Expected cash against counted cash
Questions the film answers
- How long do I have to keep till rolls and Z reports in the UK?
A VAT-registered business keeps its records, including till rolls, for at least 6 years under VAT Notice 700/21. A limited company keeps accounting records for 6 years from the end of the financial year, and a sole trader for at least 5 years after the 31 January deadline.
- What is the difference between an X report and a Z report?
An X report is a live reading of the day that can be run as often as needed and changes nothing. A Z report is the same figures saved when the day is closed, so the record stays fixed afterwards. HMRC's manual for its officers says Z reports should be consecutively numbered, dated and timed, and kept for six years.
- What do I do when the drawer is £20 short?
Record the variance as found, add a note of anything that might explain it, and do not alter the sales figures to make the sheet balance. For VAT, HMRC says daily gross takings must not be reduced for shortages from theft, fraudulent refunds and voids or poor cash handling by staff. A repeated pattern is what to investigate.
- Can I take a cash shortage from a waiter's wages?
Only if the contract authorises it or the worker has agreed in writing beforehand, and only up to one-tenth of the gross wages payable that day under Employment Rights Act 1996 s.18. Whether a table-service role falls within the cash-shortage definition is a point to confirm with advice. A recorded variance and a named closer make any conversation fairer.
- Why does my card total not match what arrives in the bank?
The bank receives money after the processor's fees, refunds and disputes are taken out, and one payout can include several days. Stripe's documentation says automatic payouts can include funds from multiple transactions and offers an itemised CSV of every payment, refund, dispute and fee. Match the payout line by line, and treat a gap as a question, not proof of loss.
- How do I split VAT between eat-in, hot takeaway and cold takeaway on one till?
Each dish needs its own VAT rate on the menu, and the till must report daily gross takings by rate. Eat-in and hot takeaway are standard-rated, cold takeaway is zero-rated unless it is a type always standard-rated, and hot takeaway drinks are standard-rated. HMRC's Notice 709/1 sets the tests, and an accountant can confirm a mixed menu.