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UK VAT + PAYE Cash Reserve Calendar (2026): A Weekly System for Small Restaurant Owners

A practical UK 2026 guide to convert VAT and PAYE deadlines into weekly cash-reserve transfers, so payroll and tax dates stop breaking restaurant cash flow.

Published Feb 14, 2026

uk restaurant cash flowvat deadlinepaye deadlinetax reserveowner operatoruk

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The stress pattern is predictable: service is busy, then deadline week hits, and cash suddenly feels short.

Most of the time, that is not a sales issue. It is a reserve cadence issue.

Quick Summary

HMRC VAT due date is usually period end + 1 month + 7 days
PAYE is usually due by the 22nd monthly when paid online
Build tax reserves weekly, not at month-end
Keep VAT and PAYE buckets separate from operating cash

Why This Matters in 2026

ONS reported UK restaurants and hotels inflation at 3.8% in the December 2025 CPI release (published January 21, 2026). ONS business insight data (published July 31, 2025) also showed that businesses most often cited inflation (17%) and taxation/labour costs (16%) as concerns.

When operating costs stay elevated, one missed tax cycle can wipe out a month of pricing gains.

The Weekly Reserve Model

Use two reserve buckets:

VAT bucket (quarterly cadence for many small operators)
PAYE bucket (monthly cadence)

weeklyVATReserve = expectedQuarterlyVAT / 13
weeklyPAYEReserve = expectedMonthlyPAYE / 4.33
totalWeeklyTaxTransfer = weeklyVATReserve + weeklyPAYEReserve

This turns tax into routine cash movement instead of emergency funding.

Worked Example

Assume:

Expected quarterly VAT payment: £11,700
Expected monthly PAYE payment: £2,600

weeklyVATReserve = 11,700 / 13 = £900.00
weeklyPAYEReserve = 2,600 / 4.33 = £600.46
totalWeeklyTaxTransfer = 900.00 + 600.46 = £1,500.46

Round up and transfer £1,525 weekly. That small buffer protects against estimate error.

Deadline Calendar Setup (Operator Version)

Put each VAT due date in your calendar at period start.
Add monthly PAYE reminders for the 15th (internal check) and 22nd (payment deadline).
Automate one weekly transfer into each reserve bucket.
Re-estimate reserve amounts on the final day of each month.

Common Mistakes

Waiting until the due week to calculate cash needed
Mixing reserve cash with daily operating account balance
Using last quarter values without current payroll trend
Treating tax reserve as “leftover” instead of fixed weekly transfer

10-Minute Friday Checklist

VAT bucket on track for next due date
PAYE bucket on track for next month
Payroll hours trend updated
One corrective transfer made if short

Bottom Line

Deadline pressure is not random. It is predictable cash timing.

If you run pricing by item and reserves by week, VAT/PAYE months stop feeling like shocks.

KitchenCost helps owner-operators keep cost floors current so tax and payroll reserves are funded from real margins, not guesswork.

Sources (checked on 2026-02-14)

Frequently Asked Questions

When is UK VAT usually due after each VAT period?

HMRC guidance says VAT Return and payment are usually due one calendar month and 7 days after the end of your VAT period.

When is PAYE payment usually due each month?

HMRC guidance says PAYE payments are usually due by the 22nd of the next tax month if you pay electronically (19th if by post).

Should VAT and PAYE reserves be pooled in one account?

Usually no. Most owner-operators get better control by using separate reserve buckets so VAT, payroll tax, and operating cash do not blur together.

How often should I move reserve cash?

Weekly is the practical cadence for small hospitality teams. It is frequent enough to prevent end-of-cycle shocks without adding admin burden.

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